Client Risk Solutions Going beyond insurance. Risk solutions for Energy. Oil, Gas and Petrochemical. Start

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1 Client Risk Solutions Going beyond insurance Risk solutions for Energy Oil, Gas and Petrochemical Start

2 Partnering to Reduce Risk AIG s Client Risk Solutions (CRS) partners with organizations to build long-term relationships that identify and help to control the risk landscapes in which they operate. Energy industries are facing a myriad of challenges, opportunities and new innovations that include supply chain reliability, cost effective infrastructure and operations, technology advancements, climate issues, amplified regulatory pressure and an increasing customer demand. These challenges are leading to vulnerabilities and emerging risks that must be properly managed in order for the upstream, downstream and chemical sectors to operate efficiently and remain competitive. Our broad range of capabilities will help address the unique risk challenges our Energy clients face. Energy risk profile Property High hazard processes in large production facilities with multinational footprints. People Highly skilled workforces exposed to a wide range of safety hazards. Performance Complex supply chains exposed to business interruption and cyber security risks. Market Segments Oil Gas Petrochemicals 2

3 Client Centric Analytics: From Insight to Response Client Risk Solutions takes businesses on a multi-stage journey through risk. From identifying and quantifying exposures to developing mitigation and response plans, CRS offers clients a continuous approach to managing risk, designed to lower their total cost of risk. Identify Business Exposures Quantify Likely Impacts Reduce Risk Effects Respond During & After Extreme Events RISK INSIGHTS CUSTOM ANALYTICS RISK MITIGATION EVENT RESPONSE Data Analysis & Exposure Summary Natural Catastrophe Supply Chain Analytics Industry Tailored Solutions: Wearable Technology & Telematics Emergency Response Planning Benchmarking Against Peers Safety Security Cost Benefit Analysis Property Risk Engineering Crisis Management Identification of Major Loss Drivers Cyber Fraud Business Continuity Planning Liability Risk Consulting Drone Inspection Services DIAGNOSTICS CONSULTANCY POST EVENT SUPPORT 3

4 Property Risk Solutions AIG Client Risk Solutions has one of the insurance industry s largest and most experienced global loss control teams focused on assessing Property and Boiler and Machinery/Machinery Breakdown related exposures unique to the oil, gas and petrochemical market segments. Our focus is to reduce and/or eliminate the potential of loss due to explosion, fire, windstorm, flood, earthquake, collapse, mechanical and electrical breakdown exposures. Key Risk Solutions for Energy Risk Assessment Identify, assess and reduce property exposures before they interrupt business activities and ensure robust business plans are in place should such an event occur. Energy & Engineered Risk Reduce and / or eliminate the potential of loss due to explosion, fire, natural or manmade catastrophe, collapse, mechanical or electrical breakdown. Construction Risk Identify risks associated with design deficiencies, fire protection, water damage and commissioning. Develop a program to mitigate and minimize exposures. Appraisal / Valuation Assist in evaluating adequacy of physical asset valuations to improve insurance, collateral and tax programs. Natural Catastrophe Advanced modeling assesses property portfolio losses for a range of perils including earthquake, windstorm and flood. Boiler and Machinery Analyze and quantify business interruption potential posed by potential equipment failure. Jurisdictional (State required) service boiler and machinery inspections. Drone Assessments Services related to infrared inspections (heat loss, moisture penetration, electrical breakdown), topography (elevation mapping for flood) and potentially sinkhole detection. Success Story: Oil Refinery Design Designing an oil refinery or petrochemical plant requires an enormous amount of engineering expertise, knowledge of standards and utilization of best practices in order to ensure the finished plant will operate safely. In addition, to ensure the process and facility are designed to the latest loss control engineering standards and practices, the design requires independent thinking and expertise. Due to our technical staff and significant resources, AIG had the opportunity to work with a client on this type of project during a grassroots build of a small oil refinery. The design review process consisted of meetings with the client and their sub-contractors to review the project details and help ensure all project design aspects met current applicable codes and standards. This process helped to ensure the sub-contractors were designing to the most current industry standards and applicable best practices. 4

5 People Risk Solutions While the Energy industry encompasses a number of specialist working conditions, there are common safety hazards facing their workforces. Our risk consultant services are available to address probability and severity by assisting in the development and implementation of a range of safety programs that reduce dangers and threats that are common across Energy segments and unique to our individual clients. Key Risk Solutions for Energy Worker Safety Risk management services, best practice assessments, training program development, ergonomic evaluations, regulatory compliance assistance and industrial hygiene services. Physical /Travel Security Assessment services to improve resiliency, life safety and physical asset protection. Terrorism Risk Assessment Assess vulnerability to terrorist & active shooter attack. Facilitate SAFETY Act designation. General / Healthcare Liability Facility reviews, incident investigation, custom recommendation, complaint and claim reviews. Environmental Environmental health and safety program consultation, training and regulatory compliance interpretation as well as access to PIER (Pollution Incident & Environmental Response) - a global response network. Client Centric Analytics Analytics, using AIG loss data, provide actionable insights to inform clients of opportunities to reduce cost of risk. Fleet Safety Loss trend analysis and benchmarking; reporting and improvement strategies; training for drivers, dispatchers and management; crash prevention. Success Story: Environmental Incident An AIG petrochemical Insured suffered a process upset due to operational error. The upset led to a shutdown and release of chemical contaminants that created an environmental hazard. The companies Risk Manager made contact with AIG seeking assistance. AIG s PIER (Pollution Incident and Environmental Response) team promptly responded and aided the insured by assembling and dispatching a correct team of contractors, helping them to control remediation costs and assisting with minimizing overall environmental liabilities. 5

6 Performance Risk Solutions Client Risk Solutions can assist Energy clients in protecting their business performance in a number of different ways. Given the sector s high operational demands and the significant value of property, equipment and technology, cyber security and the disruption an event can cause is an emerging industry concern. By evaluating a client s security protocols and programs CRS can help mitigate the impact of a cyber security event. Key Risk Solutions for Energy Transportation Marine Carrier or vessel vetting, packaging and handling assessments and cradle to grave risk monitoring services for high value goods or cargoes sensitive to mechanical shocks or climatic stresses. Product Liability Exposure analysis throughout product creation/ servicing process. Review of warning and message exposures to determine improvement. Evaluation of complaint and claims process. Supply Chain Assessment/Security Review of critical dependencies and business interruption impact, audit of security procedures and consultation on policy. Quantitative models used to determine risk of supply chain disruption. Cyber Security Training and awareness, harmful IP address/site blocking, vulnerability scanning, best practice comparison and infection detection. Fraud Detection/Investigation/ Prevention Predictive models and anti-fraud technology to help identify suspicious activity and spotlight areas of potential fraud. A global team of highly trained investigators provide local intelligence and investigations in step with local legal, regulatory, and cultural considerations. Enterprise Risk Management Review of risk management framework and risk modeling. Success Story: Cyber An Energy client was unsure how well they had secured their environment and wanted to understand where their exposures were and what they needed to remediate to achieve best practices. AIG brought cyber risk specialists in and through our Cyber Engineering Study were able to assess their operational environment, identify areas of risk and where gaps existed against best practices. The client was able to take our analysis and recommendations as a roadmap and remediate the identified issues, thus improving their overall cyber risk posture. Business Interruption and Continuity Review and quantify distribution exposure to facilities and supply chains. Develop and test business continuity plans through scenario analysis. 6

7 For more information American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. Additional information about AIG can be found at and YouTube: LinkedIn: These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds American International Group, Inc. All rights reserved USAL