ChuckDeatonLife Member  Senior Member Posts:1110  
| 05/01/2010 8:42 AM |
|
Any body headed for the Gulf. Is this the new Exxon Valdez? "Prattling on and on about being an ass with experience doesn't make someone experienced. It just makes you an ass." Rod Buvens, Pilot grunt
|
|
| 0 |
|
| 05/01/2010 9:33 AM |
|
|
Is BP handling this as a self-insured? Will they hire out to an independent for troops to administer the cleanup? Or, did they find some nitwit carrier to heave the load? I recall in 1989 the stories of adjusters who had their HAZMAT/HAZWOPER certificates sitting in a lawn chair with a clipboard checking off; one rock cleaned!, one bird cleaned!, one turtle cleaned!, all for the then hefty sum of $1,000/day plus room & board. Of course, it was Exxon paying the tab back then and not some stingy insurance company.
I called Pilot to remind them of my credentials but no word so far. I see in todays newspaper the oil slick is scheduled to reach Curtis Pilot's backyard on Sunday. This could turn out to be one juicy liability claim. I'm sure the entire national bar association will be turning out in force for this one.
Ol' Ghost
|
|
| 0 |
|
Ray HallSenior Member Posts:2443 
| 05/01/2010 10:12 AM |
|
I got a call but did not go in 88, but knew several who did. I was a very good gig. Seems we will have some fisherman who will be new "spillionaires".
BP will look for more Casualty experience type( bodily injury) than the storm trooper type. The exxon spill ended up costing 3.5 billion, this will be much much more. |
|
| 0 |
|
ChuckDeatonLife Member Senior Member Posts:1110
| 05/01/2010 4:50 PM |
|
|
I read where BP does not have liability coverage and will have to go this one alone.
The South Louisiana lawyers are primed and ready. Most likely the suit will end up being a mass joinder in federal court in New Orleans.
"Prattling on and on about being an ass with experience doesn't make someone experienced. It just makes you an ass." Rod Buvens, Pilot grunt
|
|
| 0 |
|
Tim_Johnson Member Posts:243
| 05/01/2010 5:26 PM |
|
|
I read that Hanover RE has some of the coverage, it may have just been on the platform
Tim Johnson
|
|
| 0 |
|
ChuckDeatonLife Member Senior Member Posts:1110
| 05/01/2010 6:47 PM |
|
|
We heard that Scottsdale is involved, just a rumor.
Exxon Valdez claims went on for years and I expect that this will too.
"Prattling on and on about being an ass with experience doesn't make someone experienced. It just makes you an ass." Rod Buvens, Pilot grunt
|
|
| 0 |
|
| 05/01/2010 8:28 PM |
|
|
Yes, Hanover HAD the rig coverage. Now all they have is $40 Million hole in the checking account and are desparately searching for some subrogation.
Ol' Ghost
|
|
| 0 |
|
Ray HallSenior Member Posts:2443
| 05/01/2010 9:09 PM |
|
Its been over 20 years since I was in the Energy Adjusting Field, but the big player was OIL in Bermuda for owned property. As I recall 52 large energy companies all over the world who made most of their income on Oil & Gas were the only policy holders.I think the premium was based on the net worth of the oil giants. The deductible was 100. 50, 25 & 10 million. Many risk managers would go into the international market and buy a deductible buy back. I worked a 10 million deductible buy back as the primary adjuster in 1992n on the worlds largest copper-gold mine in IrianJawra Indonesia that ran 18 million. OIL sent in a McClains GA from New Zealand 5 days after I turned in my first report to be the co-adjuster. I think XL in Bermuda did the same on the Liability side, but all this is reinsured around the world. I saw partners of the platform who had a low % percentage opt out of the operators(of the well) insurance and carry their own.
This will be the biggest loss since the Piper Platform in the North Sea about 25 years ago. These losses do not happen that often in offshore world. Storm troopers with less than15-20 years liability experience have less than a .5% chance of being deployed...... my opine |
|
| 0 |
|
| 05/01/2010 9:25 PM |
|
Ray, what is your guess? Will the Risk Management department of BP administer the loss or hire it out to a truly qualified crew like Crawford or some other firm? I'd like to give this one a try.
Ol' Ghost |
|
| 0 |
|
Ray HallSenior Member Posts:2443
| 05/02/2010 12:28 AM |
|
BP legal will be in charge 100% and any insurance will be pure indemnity(funds spent). C & C worked the last one, but no one is really qualified to turn out a large team. C & C has hundreds of Casualty Adjusters on staff and would have an edge I would think. |
|
| 0 |
|
sbeau4014Founding Member Member Posts:427
| 05/02/2010 5:49 AM |
|
|
Word I've heard is that the rig physical cover is the Hannover RE, and that BP has cover to around 900 million or so for the GL which of course would be layered numerous times with about 5-10 different carriers splitting each layer. More likely BP is on the hook beyond that. If I were a betting person, I'd say that Crawford and Co has been their choice to administer their claims in the past, but there could be/are other vendors out there working diligently for that work. I would venture those with strong liability experience could have some work long range on this one.
|
|
| 0 |
|
| 05/02/2010 11:46 AM |
|
|
This will be a gold mine for the accounting firms that can determine current and future loss of income claims and business interuption claims. From shrimpers to hotels and the individuals who rent out their beach house from time to time, LOI/BI is going to be huge.
Rocke Baker
|
|
| 0 |
|
sbeau4014Founding Member Member Posts:427
| 05/02/2010 1:23 PM |
|
|
Rocke, I agree in a big way. Most 1st party claims require physical damage on site from a covered peril to pick up these damages, and a lot of policy's won't come into play, but the 3rd party claims vs BP will be tremendous. One area that wilkl compound the problems on these claims is that P&L's/tax records won't be able ot substiantiate a good BI claim, but there will be thousands that will say that they are just recovering this year from Katrina and this was going to be the boom year for them. the last 3-4 years can't be taken into consideration in working up the BI claim. Anyone that has dealt with these type earnings losses knows the headaches ahead.
|
|
| 0 |
|
Ray HallSenior Member Posts:2443
| 05/02/2010 3:16 PM |
|
The need for street adjusters will be several dozen or so. I think that was the top out in Alaska. No need for estimating programs, or ladders.
|
|
| 0 |
|
| 05/03/2010 12:53 AM |
|
|
From ilstv.com
An explosion and large fire on an oil rig in the Gulf of Mexico left 11 workers missing and 17 others injured on April 20. The blaze on the Deepwater Horizon drilling rig sent flames and smoke high into the sky about 40 miles off the coast of Louisiana. A new report from Guy Carpenter outlines the numbers associated with the event.
According to Guy Carpenter, reports said the rig, which is owned by Transocean Ltd, was under contract to the oil giant BP at a cost of $533,000 a day and doing exploratory drilling. The rig was listing badly as it was consumed by flames and it eventually sunk on April 22, leaking oil into the Gulf of Mexico.
Reports said the rig was built in 2001 in South Korea at a cost of about $350 million.
Transocean has announced that the total insured value of the rig was $560 million and it has insurance to cover the total loss. According to Best’s Insurance News, Transocean’s annual report said a deductible ranging from $500,000 to $1.5 million would apply in the event of a total loss of a drilling unit.
Transocean’s filings also indicate a $10 million deductible on crew injury liability and a $5 million deductible on third-party non-crew claims, the report says. Transocean also carries $950 million in third-party liability coverage, the report said. Transocean retains the risk for any liability losses in excess of the $950 million limit.
According to sources quoted by Insurance Day, the incident is likely to produce a sizeable loss to the insurance industry, including some losses to Lloyd’s syndicates. Insurance Day added that QBE’s syndicate 1036 is reported to be the rig’s lead insurer. Munich Re and Hanover Re have also said they expect a claim from the explosion and fire. Hannover Re said the drilling rig will result in a major loss for Hannover Re, expected to be EUR 40 million or USD$52 million. “Therewith, we remain considerably below our major loss expectancy for the second quarter”, confirmed CEO Ulrich Wallin.
--------------------------------------------------------------------------------
I want to die peacefully in my sleep like my grandfather, not screaming in terror like his passengers.
|
|
| 0 |
|
| 05/04/2010 10:19 AM |
|
|
Check out msnbc. They report BP only has a 75 million liability exposure other than the clean up cost. A federal oil spill fund (1.6 tril) will pick up the rest. This is getting crazy.
|
|
| 0 |
|
| 05/04/2010 1:41 PM |
|
|
So, uhhh, so my tax dollars are going to pay for everything over $75 millions. Where do I sign up to make some shekels from the federale coin bucket?
Look, we all know one whole bunch of money is up for grabs here and the weather will be somewhat easier to take than Alaska was in 1989. Granted, a mosquito net over ones hat is necessary as are long sleeve white shirts to keep the sun from causing skin cancer on your forearms. We will sweat, but that's better than freezing.
Ol' Ghost
|
|
| 0 |
|
| 05/05/2010 2:55 PM |
|
Posted By Ol' Ghost on 04 May 2010 01:41 PM
So, uhhh, so my tax dollars are going to pay for everything over $75 millions. Where do I sign up to make some shekels from the federale coin bucket?
Look, we all know one whole bunch of money is up for grabs here and the weather will be somewhat easier to take than Alaska was in 1989. Granted, a mosquito net over ones hat is necessary as are long sleeve white shirts to keep the sun from causing skin cancer on your forearms. We will sweat, but that's better than freezing.
Ol' Ghost
There is no cap...well there was...from previous legislation after the Valdez...but BP is going to pay all legitimate claims....and there is legislation pending to repeal the cap.
http://wbztv.com/national/gulf.oil....70609.html
http://www.npr.org/templates/story/story.php?storyId=126468782
|
|
| 0 |
|
| 05/05/2010 4:58 PM |
|
|
BP is going to walk into court and say "here is our 75 mil judge" and walk out the door.
|
|
| 0 |
|
| 05/05/2010 5:44 PM |
|
Posted By ALANJ on 05 May 2010 04:58 PM
BP is going to walk into court and say "here is our 75 mil judge" and walk out the door. I don't think so...not if they want to drill in the GOM again. However, legally they could do as you said.
|
|
| 0 |
|