In late 2019, Charles Taylor Canada launched a unique and comprehensive Pollution Loss Database of insurance losses related to oil field incidents in Western Canada over a ten-year period. By providing in-depth analytics of sector loss patterns and risk trends, the database enables our adjusters to combine their own industry experience with historical market data; improving their ability to estimate accurate loss reserves.
By providing in-depth analytics of sector loss patterns and risk trends, the database enables our adjusters to combine their own industry experience with historical market data; improving their ability to estimate accurate loss reserves. It also provides decision makers, amongst insurers, brokers and oil and gas companies, with quantifiable insights into environmental risk analysis; improving risk management and pricing of risks.
The database is accessible through user-friendly digital dashboards offering interactive data utilization tools, delivering at-a-glance summaries of key facts. Data includes year of spill, region, cause, type of loss contaminant, age of line, average inflation-adjusted gross quantum, number of claims and more.
Bolstering expertise
Two years ago, our own loss adjusters, as well as risk managers and underwriters, were relying on their own personal experiences and those of their colleagues to assess oil and gas risks and estimate loss reserves – just as they always had. This tacit information was (and still is) valuable. But it was also inherently subjective, and prone to cognitive biases.
Objective analysis
Here at Charles Taylor Canada, we recognised that we could improve this method of working by using our 20+ years of experience in managing oil and gas losses to draw on our significant historical data. From this we could provide objective analytics on loss trends that would assist our own loss adjusters, as well as risk managers and underwriters.
The Pollution Loss Database
The Pollution Loss Database aggregates data from hundreds of sudden and accidental oil-field-related insurance losses across Manitoba, Saskatchewan, British Columbia, and Alberta; the region where much of the Canadian oil and gas industry is centralised with the largest concentration of pollution losses. It is updated with new loss facts and details bi-monthly to ensure the accuracy and timeliness of insurance loss data for the region.
Essential features
The Pollution Loss Database is the most wide-ranging amalgamation of relevant loss data from oil & gas pipeline and well operations for the region. It represents information on the vast majority of insurance losses triggered by accidental incidents reported during the previous decade.
This information is presented in a value-adding format to identify and analyse loss patterns and risk trends. The databased application is accessible via Charles Taylor’s user-friendly digitised dashboards, offering interactive data analytics that deliver at-a-glance summaries of key information across myriad search criteria.
The dashboards are available via a secure portal, protected by a username and password unique to each individual user.
Data related to per loss events include:
• Year of spill
• Province
• Region
• Type of terrain (water, agricultural, muskeg etc.)
• Type of loss (pipeline spill, blowout)
• Type source (well or pipeline)
• Cause (corrosion, impact, defect etc.)
• Leak duration in days
• Diameter of line (inches)
• Type of line (steel, fiberglass, composite etc.)
• Type of contaminant (oil, Natural Gas Liquids, saltwater etc.)
• Approx. spill volume (cubic meters)
• Age of line
• Gross quantum
• Gross quantum (inflation adjusted)
• Average of Gross Quantum
• Number of Claims
"The Pollution Loss Database offers our loss adjusters, as well as insurers, brokers and oil & gas companies who subscribe to the service, a unique, holistic view of pollution losses across Western Canada over the past decade and more."
The benefits
The Pollution Loss Database offers our loss adjusters, as well as insurers, brokers and oil & gas companies who subscribe to the service, a unique, holistic view of pollution losses across Western Canada over the past decade and more. It provides quantifiable insights on environmental loss patterns and risk trends via a value-added technologically advanced platform – using critical criteria specific to a client’s business.
As an objective analytical tool, it supplements a reliance on personal experience with statistically relevant data; providing key metrics, such as loss ratio, severity and average cost per claim. By enabling our loss adjusters to combine their own industry experience with historical market data points, the tool has improved our adjusters’ ability to estimate accurate loss reserves.
Risks and their associated costs can now be more accurately identified by our insurer, broker, and insured clients, which is leading to improved risk management. The tool does not replace the tacit knowledge of adjusters, risk managers and underwriters, but instead provides another lens through which they can holistically assess the risks involved.
Business impact of the technology
The Pollution Loss Database is enabling us to drive greater cost management efficiencies and bottom line financial returns for clients. This is helping us to deliver on our commitment to enable clients to outperform. It is also driving client retention and new business wins.
In addition, by driving a sea change in decision-making in the oil & gas pipeline and well operations field, the tool has cemented Charles Taylor’s place as a technology innovator.
Robert Paxton
Vice President, Strategy & Performance
robert.paxton@charlestaylor.com
Location:
Calgary
