Client Risk Solutions Going beyond insurance. Risk solutions for Energy. Chemical. Start

Transcription

1 Client Risk Solutions Going beyond insurance Risk solutions for Energy Chemical 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 risk profile The chemical industry is faced with an environment of challenges and new opportunities and innovation that include supply, reliable and cost effective infrastructure & operations, technology advancements and efficiencies, climate issues, amplified regulatory pressure, formula optimization and best practices and an increasing customer demand. These challenges are leading to resource scarcity and vulnerabilities that must be properly managed in order for the energy sector to deliver profitable growth. Our broad range of capabilities will help address the unique risk challenges our clients face. 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 Adhesives & Sealants Bioethanol & Biodiesel Cellulosic Manmade & Synthetic Fibers Detergents & Soaps Industrial Inorganic & Organic Chemicals Fertilizers Industrial Gases Pesticides & Agricultural Chemicals Pharmaceuticals Plastic Material & Resins 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 (CRS) 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 chemical 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/Chemical Property Risk Assessments Identify, assess and reduce property exposures before they interrupt business activities and ensure robust business plans are in place should such an event occur. 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. Energy & Engineered Risks Identify, assess and reduce property exposures before they interrupt business activities and ensure robust business plans are in place should such an event occur. Reduce and/or eliminate the potential of loss due to explosion, fire, natural or manmade catastrophe, collapse, mechanical or electrical breakdown. Drone Assessments Services related to infrared inspections (heat loss, moisture penetration, electrical breakdown), topography (elevation mapping for flood) and potentially sinkhole detection. Boiler and Machinery Inspections Analyze and quantify business interruption potential posed by potential equipment failure. Jurisdictional service boiler and machinery inspections (State required inspections). Natural Catastrophe Advanced Modeling High-level reviews of exposures to natural hazards. Use of market recognized and proprietary catastrophe modeling software tools to assess property portfolio losses for a range of perils including earthquake, windstorm and flood. Detailed risk engineering assessments for individual complex facilities or infrastructure assets. Success Story: Critical Equipment Dependency CRS conducted a Loss Prevention Survey at a moderately-sized generic pharmaceutical products manufacturing company. During the survey, the CRS Risk Engineer inquired about pollution-control equipment which may affect production. The client informed the CRS Risk Engineer that the site owns a Regenerative Thermal Oxidizer (RTO), a device which is used to destroy air toxins, odors, Volatile Organic Compounds (VOCs), and hazardous air pollutants that are discharged in industrial process exhausts. Nearly all of the company s manufacturing operations depended on this equipment, due to air permitting requirements. The CRS Risk Engineer informed the client that the replacement time to obtain a new unit could be significant. When the risk engineer returned to his office he contacted the RTO manufacturer and discovered that a new unit would take 7-9 months to replace. After receiving this information the client opted to purchase spare parts from the manufacturer to have them on hand in case they were needed. This decision will help the client be better prepared and minimize the unit downtime to a more manageable days. 4

5 People Risk Solutions While work within the chemical industry can include many hazardous tasks and conditions, there are common safety hazards facing their workforces. Our CRS Liability 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 within these industry segments. Key Risk Solutions for Energy/Chemical General Liability Incident investigation and management policy reviews, complaint management process evaluation, facilities review, workplace violence susceptibility assessments and security reviews. Worker Safety Risk management services, best practice assessments, training program development, ergonomic evaluations, regulatory compliance assistance and industrial hygiene services. Enterprise Risk Management Review of risk management framework and risk modeling. Product Liability Exposure analysis throughout product creation/ servicing process. Review of warning and message exposures to determine improvement. Evaluation of complaint and claims process. Client Centric Analytics Analytics, using AIG loss data, provide actionable insights to inform clients of opportunities to reduce cost of risk. 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. Fleet Safety Loss trend analysis and benchmarking; training for drivers, dispatchers, and management; vehicle accident prevention. Success Story: Management Program Review In review of a cancer research facility Work Space Management Plan, a CRS Liability Risk Consultant identified that the plan lacked a No Work Environment Procedure for pregnant employees in laboratories using teratogens. CRS assisted management in development of a plan to protect the employees from this harmful environment, which eliminated potential injuries and subsequent liability issues. 5

6 Performance Risk Solutions The chemical industry is faced with multiple challenges with efficiency, innovation, supply chain and distribution. From emerging cyber risks to transportation exposures, Client Risk Solutions can draw on a range of resources to minimize disruption of business. Key Risk Solutions for Energy/Chemical Product Liability Exposure analysis throughout product creation/ servicing process. Review of warning and message exposures to determine improvement. Evaluation of complaint and claims process. General Liability Facility and security reviews, complaint management evaluation, incident investigation procedure reviews and workplace violence controls. 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. Inland Marine Land Based Contractors Risk assessments of equipment maintenance programs, equipment security, transit procedures, physical equipment damage exposures and controls, and hoisting and rigging operations. Success Story: Product Liability A client involved in chemical manufacture and distribution wanted to alter its distribution methods to take more control of the distribution process and storage options. The client asked for a product and general liability analysis to identify any new exposures. CRS identified how moving further through the stream of commerce could make the client more responsible for product quality for a stage storage and shipping during which many products are susceptible to quality degradation. We worked with the client to make sure they had better contracting provisions with third party providers where possible, and strong quality controls when they retained responsibility for the distribution and storage. Business Interruption and Continuity Review and quantify distribution exposure to facilities and supply chains. Develop and test business continuity plans through scenario analysis. Cyber Security Training and awareness, harmful IP address/site blocking, vulnerability scanning, best practice comparison and infection detection. Enterprise Risk Management Review of risk management framework and risk modeling. Ocean Marine Desktop vetting and/or physical inspection for vessel suitability. Risk oversight for critical and key infrastructure project shipments including cradle to grave risk monitoring. Marine Liability Risk assessments for port, marine terminal, stevedoring, passenger vessel, shipyard, tug and barge and other miscellaneous marine types. 6

7 For more information The scenarios described herein are offered only as examples. Insurance coverage and risk consulting services may vary depending on actual facts and circumstance. Risk engineering services may not address every possible loss, law, rule, regulation, practice or procedure. Reliance upon, or compliance with, any recommendation in no way guarantees the fulfillment of your obligations under your insurance policy or as may otherwise be required by any laws, rules or regulations. No responsibility is assumed for the discovery and/or elimination of hazards that could cause accidents, injury or damage at your location. The information contained herein should not be construed as financial, accounting, tax or legal advice and does not create an attorney-client relationship. 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 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 material. 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 jurisdictions, 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