Shipbuilder Insurance Presentation

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An Insurance Pers ective on Newbuildin

by Tang Sauby Tang Sau WengWeng 2626 June 2009June 2009


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CSL Global Ltd

Leading Providers of Marine & Transportation Risk Services

CSL Global Ltd is a leading provider of professional claims, risk control and recovery services to the marine insurance

industry and to clients operating in and around the global cargo, shipping, transportation and supply chain sectors.


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CSL Global Ltd is a leading provider of professional claims, risk control and

recovery services to the marine insurance industry and to clients operating in and

around the global cargo, shipping, transportation and supply chain sectors.

CSL offers clients consistently high service standards founded upon a strongcommitment to technical excellence and communication.

Our international resource network comprises a team of over 65 dedicated industry

specialists drawn from a broad but complementary range of marine

and

transportation risk disciplines, operating from owned or controlled offices in NorthAmerica, Latin America, Europe and Asia.

Our offices are managed and operated by dedicated marine personnel with provencareers in the marine and transportation risk sectors. The marine business is our

upbringing, our lifeblood and our future.

In the fast moving and volatile world of international commerce,

CSL companies

have the operational agility and innovation to respond to clients modern day needs

on a local, regional or global basis.

A Brief Introduction to CSL Global


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RISK CONTROL

Loss prevention

Risk control reviews

C-TPAT / SOX security planning andaudits

Location reviews

Load, stow & securing surveys

Vessel outturn inspection & control

Supply chain

risk analysis, risk

monitoring

Car accounts

transit & storage

Marine risk consultancy

CSL Global Services

MARINE CLAIMS

Surveys & investigations

Freight liability

Specie, including Cash in Transit

Claims management

Loss adjusting

General Marine Liability

Third Party Administration (TPA)

Recoveries

PROJECTS

Warranty surveys for the internationalinsurance markets on large infrastructuredevelopment projects.

Power generation

Petrochemical

Oil & Gas

Heavy Industry

Load, discharge & route /transportation consultancy

Management of whole project on aglobal basis

TECHNICAL SERVICES

Hull & Machinery

Shipyard inspections

Marine casualty

Port risk assessments

Tug & tow

Super yachts


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Contact CSL Global

For further details of how CSL Global can assist you, or to instruct us to act on your behalf please contact thefollowing regional client managers:

GLOBAL SERVICES

Cargo & Logistics:

Hull & Machinery:

Chris Ball

+44 20 7816 5870 Steve Gilbert

+44 20 7816 5870

[email protected]

[email protected]

EMEA

(Europe, Middle East & Africa) USA & Canada

Europe:

Chris Ball +44 20 7816 5870

Michael Logue +1 609-240-9690

[email protected]

[email protected]

Middle East:: Steve Gilbert

+44 20 7816 5870

Michael Iversen

+1 417-461-7090

[email protected]

[email protected]:: Jason Gibbons +44 1622 816 015

[email protected]

Latin & Central America

Asia

Jorge Viuela

+56 9 9251-1137

Sau

Weng

Tang

+65

9728 3168

[email protected]

[email protected]

Mark Hanna

+56 9 [email protected]


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Agenda

Risk Profile of Shipbuilding yards

Present market conditions

Risk Assessment of Shipbuilding yards

Key learning points from JH 143 surveys


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Risk Profile of Shi buildin Yard

Yard RisksConstruction Risks (The vessel under construction)


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Risk Profile of Shi buildin Yard- Yard Risks

Environmental earthquake, flooding, typhoon

Physical damage Welding, hot work, FIRE

Theft tools and equipment

ersonne n ur es


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Risk Profile of Shi buildin Yard- Construction Risk (vessel under construction)

Physical damages fire, mishandling of equipment

Delay equipment, parts

Non performance failure to meet design expectations

on rac ua ssues no se v ra ons


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Present Market Conditions

insurers perspective

Orderbook 9,454 vessels of 180m CGT / 557m dwt

Asian yards attracted some 55% of global orderbook60% contracted in Chinese shipyard (in 2009)

Vessel value difficult to assess value accurately

Underwriting capacity Reduction in number of underwriters

Risk Management approach Introduction of JH 143 shipyard risk assessment


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Risk Assessment of Shipbuilding Yards

- Why is it necessary ?

n a mon per o m on o c a ms

passed to Underwriters All from fires and other accidents during

newbuildings and conversion projects


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Imagine this .


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Construction Risk some examples


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Everyone thought that they were

SAFEBUT

e as

Not been effectively dealt with


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What is JH 143 Warranty Risk Assessment ?

Introduced in 2003 by the Joint Hull Committee at Lloyds

A survey of the shipyard before construction or repairs

- to evaluate the shipyard

Insurers have demanded that surveys to be completed beforeproviding any form of coverage

Surveys to be carried out by independent parties

shipyards

construction


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What does JH143 survey covers ?


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JH 143 Grading


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From experience, the key learning points from

JH 143 surveys are :

The management of sub contractors

ouse eep ng an c ean ness

Fire revention and fi htin

Top management involvement


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Agenda

Risk Profile of Shipbuilding yards

Present market conditions

Risk Assessment of Shipbuilding yards

Key learning points from JH 143 surveys


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Claims on the rise vs Increasing premiums

Vessel current value difficult to assess

Risk assessment of shi ards is becomin o ular


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Questions and Discussions

A master would not considered to A master would not considered to

have sailed the ocean until he has hishave sailed the ocean until he has his

deck washed every seasondeck washed every season


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T H A N K Y O U F O R Y O U R A T T E N T I O N Tang Sau Weng

Managing Director CSL Global - Asia

Documents

Shipbuilder Insurance Presentation