Clients Going Abroad

Challenges of Domestic Insurers

Kamal Tabaja FCII 30th January 2012

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What is a Jet Lag?

Definition:
It is when travelling across a number of time zones, the body clock will be out of
synchronization with the destination time. Hence, the Body's natural pattern is upset
and will need to adjust to the new environment.
In Insurance Terms:
It is when you go abroad into a new venture or project and expect to have the same
terms and condition you had in home environment.

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An Outline

Facts and Figures of Asian Oil Companies

Focus on China
Challenges Faced by Clients Abroad
Insuring Clients Abroad
Conclusion

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Facts

Growing demand for Hydrocarbons

Economic Growth
Industrial Growth
Ability to Spend
Over $US 50 Bn of M&A deals during 2012 by Asian NOCs

North & Latin America

East Africa
Europe
Majority of Asian Companies are expanding

Governments policies to secure more resources

Increase profits from Overseas operation

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Petroleum Demand

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Imports and Exports

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International Production Sources

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Outlook of Output and Imports

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Overseas Production

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Contribution of Companies

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Challenges of the Industry

Most Diverse

Exploration in Harsh Environments

Scarcity of Human resources

Simplest Logistic Tasks can be difficult

Insurance

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Challenges of Clients

Regulations

Different Requirements
Project delays
Product Export Issues
Environmental Challenges

Logistics
HSE Regulations and Procedures
International Bodies
Human Resources
Political Risk and Instability

Possibly Hostile Zones

Protecting Interests
Nationalization and Confiscations

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Mitigation

Early Assessment
Calculating the risk during the project cycle
Comparing Regulations Vs Risk at hand
How much of the Risk can be carried?

Timing

Budgeting
Direct Project Costs
Indirect Costs (Often Insurance is taken part of that- Wrong!!)

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Challenges for Client Insurer

New Learning Curves

Unknown Territories
Unknown Regulations
Financial Challenges
Servicing Client Abroad
Presenting the Client
Absence of Local Presence
Understanding the Culture and way of operation
Insurance Requirements
Products and Covers not requested in home land
Sudden Changes in Exposure and Risk
Educating the Client

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Adding Value

Advisory
Project Finance
Different Stage Involvement
Preparation for the market
Servicing Client Abroad
Finding the right partner
One Stop Shop
Communicating with Local Community
Insurance Pricing & Cover
Finding the right security
Obtaining Follow Market
Building of Internal expertise
Quoting and Leading Business

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Conclusion

Timely Preparation for a new trip or venture

&
Finding the right aid or partner

will help you to cope with a Jet Lag much faster

Solution: Red Bull & Coffee

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Insurance: Budget Well

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Any Questions ??
Thank you

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