IMIA Conference Working Group Paper 94 (15) Stadiums Mexico - September 2015
Working Group Contributors Working Group Members Jeremy Terndrup, Willis Eric Brault, AA Corporate Solutions Rony Daniel, Doha Insurance Mohamed F.El-Ailah, Qatar General Insurance and Reinsurance Co Roman Gromotka, Munich Re Anna Lukyanova, Renaissance Insurance Group Georges Helou, SCOR Roman Emelyanov, Sogaz Ilya Gremin, Sogaz Marina Zyuganova, Renaissance Insurance Group Chairperson IMIA EC Sponsor: Olivier Hautefeuille, SCOR 2
Contents: 1. History of a stadium construction. Role of a stadium in a modern world. 2. Risk description Anatomy of a stadium Prototypes and challenging structures 3. Risk analysis External perils Inherent perils 4. Available insurance coverage and underwriting considerations Risk management process Risk monitoring Available coverage 5. Lessons learned from claims. Conclusions Claims examples Conclusions. 3
The history of stadium construction more then 2 500 00 thousand years The transformation of the stadium: from ancient times to modern futuristic projects : What has been changed: Stadium has got additional functions throughout the time Changing of the design: adding a superstructure/high tech installations From public funding to private funding What remains stable: Huge complex construction Attracts a lot of people Basic design elements (excluding roof) remain stable 4
Anatomy of the stadium: what should be examined and assessed? Underwriters should carefully analyse the project and assess which parts are the most challenging and needs attention throughout the construction and operation: The most important parts are: Roof Pitch (moving pitch, grass coverage) High tech building installations 5
Types of the stadium construction projects - particularities: New construction Reconstruction Risk connected with the prototype structures Lille stadium (France) Risks connected to the existing structure (property) Luzhniki Stadium (Russia) As such, A detailed and relevant risk engineering assessment becomes required that extends beyond standard project evaluation concepts. Such appraisal is essential to lay the foundation for the prudent provision of intended policy cover and technical pricing approach. 6
Analysing and assessing the risk External perils: Inherent perils: - Vicinity and location - Design and architectural view - Climate - Building service systems - Soil ( dynamic and static loads) - Transformations of the elements - Construction process - Robustness of the structure 7
Global risk matrix for exposures Hazards Natural hazards (6) Earthquake MPL Scenarios Total loss for projects within 50km from the epicenter. Frequency Severity H M L H M L Ice and snow accumulation Wind storms Flood Large part of the works can be affected by the same event resulting in roof collapse on seats and structures. Large part of the works can be affected by the same event resulting in roof destroying or collapse on seats and structures. Partial loss of structures plus possible collapse, in case of violent flash flood. 1) 2) 3) Landslides Possible collapse. Lightning Lightning storms usually affect limited parts but with possible risk of total fire following. Subsidence Effects depending on subsoil conditions affecting foundations and structures in case of construction on filled areas (also as consequence of EQ).can lead to destroy and rebuild External Hazards Large part of the works can be affected by the event Aircraft impact resulting in roof destroying or fire following then collapse and total loss. Bush fires No great exposition Great exposition with wide risk of collapse or fire Terrorism & SRCC following which will lead to complete loss. This may happen during end of work or stand by/silent risk period. Theft of minor to moderate quantities of valuable goods Theft (bulky items) stored at the construction site or partially assembled along the line. Nearby man-made hazards Yes for low intensity and attritional level (5) Project intrinsic hazards Fire Faulty design and workmanship Construction operations The most exposed items are internal systems and PML usually refers to the largest fire unit. Clearly depending of the architectural novation. If the structure is very well known the risk is rather low, if the structure is complete new one calculation, with specific raw materials and bad quality checking chain system then become ith with high intensity Lifting, erection operations are intrinsically risky given special equipment and high rise structures ( 4 ) 1) Frequency is not included for Natural hazards as it depends on the location of the project. 2) Wind storm severity have to be increased to High in case of projects located in areas subject to heavy snow falls/freezing rain or hurricanes/typhoons. A layer of ice 1 cm thick means an additional weight of almost 100 kg per 100 m2. 3) Flood severity can be considered Low where morphology allows to clearly separate different flood areas/chat basins. 8
The importance of risk monitoring Helps to avoid and/or diminish the damage to property and injuries among people Gives the additional instrument of control on the construction process Helps the Insurer with the careful assessment during the construction period, warranty period Essential for DSU/IDI insurance 9
Engineering insurance coverage for Stadiums PP (project policy) LD (liquidated damages) IDI (inherent defects insurance) MD Section TPL Section DSU Section Risk monitoring clause is recommended, high exposure during the maintenance period High TPL exposure during maintenance shouldn t be neglected Careful pricing Project revenues are very sensitive to the completion on the certain date Highest exposure during the last days of construction NB!! The importance of possible accumulation of risks 10
Claims example 1 Date 7/07/2011 Stadium: FC Twente stadium Grolsch Veste (Enschede -NL) Capacity: 30 206 Located: Built: 1997 1998 Cause of accident - engineering errors Enschede, Netherlands engineering errors Source: http://en.wikipedia.org/wiki/file:grolsch_veste_1.jpg 11
Accident description During the renovation work at the Grolsch Veste, the roof of the building collapsed. Source: http://en.wikipedia.org/wiki/file:grolsch_veste_2.jpg 12
Cause of failure Technical factor Human factor The insufficient stability of the incomplete roof structure. Time pressure The main original construction sequence of the work were abandoned. 13
Claims example 2 Date 14/02/2004 Project : Transvaal (largest water park in Moscow) Capacity: 2 000 Located: Moscow, Russia Built: 2002 Cause of accident Design error 14
Accident description Roof collapse due to: inadequate design engineering mistakes made in course of erection 15
Lessons learned from claims Main reasons for claims are: Natural hazards Design errors Errors and omissions during assembling Large losses can arise both during the construction and warranty period A lot of large losses during the warranty period are connected with the behaviour of the crowd and thus are unpredictable psychological The others are connected with the design errors combined with the AoG (usually storm) The time pressure is crucial for this type of construction: a lot of accidents was due to human factor meaning a lot of changes in the working schedule which was initially agreed 16
Conclusions and recommendations of the Working Group Careful analysing of the risk Risk monitoring during project stage, construction and warranty period Prudence is granting defects coverage, TPL during maintenance, DSU Assessing the risk accumulation 17
Thank you for your attention! 18