Jardine Lloyd Thompson Group plc - sefaz.ba.gov.br · Benefício e Consultoria. Filiais: São Paulo, Rio de Janeiro, Salvador, ... EtanoldutoPaulínia -Ribeirão Preto Descrição:

Jardine Lloyd Thompson Group plc

Seguros nas Parcerias Público-PrivadasMaio 2014

Índice

1- A JLT

2- PPP, Background

3- As diferentes Perspectivas

4- Princípios do Programa de Seguros nas PPP

5- Estrutura do Programa de Seguros

6- O Papel do Corretor de Seguros nas PPP

7- A nossa expertise em Construção

Jardine Matheson Holdings

Fundada em 1832, a Jardine Matheson & Co (JM & Co) começa na cidade de

Canton na China, sendo a primeira empresa privada, em 1834, a exportar chá

para a Inglaterra, quando as Companhias do Leste da India perderam o

monopólio do comércio internacional.

Matriz em Hong kong - A Jardine Matheson

promoveu a fundação de Hong Kong em 1836

comprando os primeiros lotes de terras e iniciando

sua urbanização. Mr. Matheson foi primeiro

governador geral de Hong Kong(Tai Pan);

Amplo portfólio de empresas líderes de mercado em

engenharia, construção, transporte, comércio de

motor, propriedades, seguros, restaurante e hotel;

182 anos de existência;

Presença em mais de 130 países;

Aproximadamente 330.000 funcionários;

Faturamento em 2012 U$ 60,5 bilhões.

Jardine Lloyd Thompson

JLT – Jardine Lloyd Thompson é uma das mais importantes empresas especializadas em

Gestão de Riscos, Corretagem de Seguros e Resseguros e Consultoria em Capital Humano

de todo o mundo.

A JLT foi fundada em 1981. O Grupo Thompson passou a ser listado na Bolsa de Valores de

Londres em 1987 e está posicionada entre as 4 maiores corretoras de seguro e resseguro.

JLT Group em 2013:

Mais de 9.100 funcionários

Faturamento > USD 1,6 bilhão

> USD 10 bilhões prêmios colocados

Mais de 100 escritórios em 35 países

JLT Brasil Holdings

Fundada em 1989 no Brasil, a JLT conta com mais de 300 funcionários e 7 escritórios nas principais

cidades do país. Nossos profissionais possuem alto nível técnico e atuam de forma multidisciplinar,

buscando oferecer soluções inovadoras e diferenciadas para os nossos clientes.

Especializada em riscos corporativos, tornou-se líder nos principais segmentos de seguros e

resseguros. A Corretora também estrutura programas internacionais para empresas brasileiras que

atuam no exterior, através dos escritórios da JLT presentes em mais de 135 países.

Maior Broker de Resseguros no Brasil;

Experiência local com expertise global em

todos os ramos de Resseguros, Seguros,

Benefício e Consultoria.

Filiais: São Paulo, Rio de Janeiro, Salvador,

Recife, Fortaleza, Curitiba, Vitória e Belo

Horizonte;

Volume de prêmio emitido em 2012:

*Seguros: R$ 400 milhões

*Resseguros: R$ 700 milhões

2- Background

Origem- Anos 90 no Reino Unido : O governo conservador quer uma maior

participação do setor privado na prestação de serviços públicos

- Reduzir a utilização dos recursos públicos a cambio de uma concessão por período de 25-30 anos

Serviços nas PPP- Aquisição de um serviço pelo setor privado, vs. aquisição de ativos

- Rodovias, Prisões, Hospitais, Escolas, Energia, Transporte, etc.

Legislação favorável- Lei Federal 11.079/2004 (30 dezembro 2004) . Introduz o modelo

PPP no marco jurídico Brasileiro

- Hoje, pelo menos 11 dos 26 estados tem normativa em matéria PPP


Contrato

Financiamento

Contrato de Acionistas

Contrato de

Concessão

Contrato de O&M

Apólice(s) de Seguro(s)

Contrato de

Construção


Maior Risco que na contratação tradicional- Financiamento sem recurso :

empréstimo garantido apenas com as rendas esperadas do projeto e os ativos

Maior Controle da Estrutura

- Verificar que os interesses das diferentes partes do projeto estão cobertos corretamente

Maximizar a Transferência de Riscos

- Ter apenas um interlocutor para todos os Riscos... SPE

Desafio para o Mercado de Seguros- Coberturas mais Amplas que o standard

Garantir a prestação do Serviço Público

4- Princípios dos Seguros nas PPP

Apólices mais abrangentes

- Vamos ter que trabalhar em muitos casos com Apólices a Medida

Incerteza dos custos durante a Concessão

- O Mercado de Seguros e cíclico.

- Concessões de 25-30 anos

Requerimentos para os Seguros

- Contratos do Projeto: Financiamento, Construção, O&M...

- Due Dilligence : Satisfação dos interesses dos Financiadores

Condição para o Fechamento Financeiro

- Due Dilligence

5- Programas de seguros PPP

Transporte(project cargo)Delay in Start-Up

Riscos de Engenharia

Delay in Start-Up

Responsabilidade Civil

RC do Empregador

Sabotagem e Terrorismo (+DSU)

Risc. Operac. + Quebra Máquinas

Interrupção de NegóciosResponsabilidade Civil

RC do Empregador

Sabotagem e Terrorismo (+BI)

Fornecimento Construção Exploração


Perdas de Receita

- Para todas as fases do projeto : Transporte (DSU), Construção (DSU) e Operação (Interrupção do Negocio)

- Conceito a ser segurado : igual ou superior ao Serviço da Dívidaesperado acrescido dos custos fixos para a continuação da exploração


Cláusulas de Proteção

dos interesses dos

Financiadores

- Loss payee- Severability of interests

- Error and omissions

- Notification

- Non cancellation

6- Papel do Corretor nas PPP


compreensão

detalhada do setor

PPP e das

necessidades do

SPE

uma equipe dedicada de

pessoas com experiência

ter força de negociação,

não apenas frente as

seguradoras


Desenho de uma apólice “a medida” com base em:

Serviços durante a fase de pré-construção:

Serviços durante a fase de construção:

- Coberturas mais abrangentes- Os seus requerimentos contratuais- O seu apetite pelo risco

- Analise dos principais contratos do projeto- Assessoria na alocação do risco e sua segurabilidade- Desenho dos seguros atendendo os requerimentos (governo e

financiadores)

- Desenho de manuais para sinistros- Acompanhamento das reuniões de Gerenciamento de Riscos e sinistros- Assessoria nas reclamações no caso de sinistros



compreensão

detalhada do setor

PPP e das

necessidades do

Governo



Apoio na elaboração dos

requerimentos nos editais

e contratos



compreensão

detalhada do setor

PPP e das

necessidades dos

Financiadores



avaliação do programa de

seguros, antes do

fechamento financeiro


JLT tem uma extensa experiência em PPP, tendo

atuado em mais de 350 projetos fechados, tanto

como broker e como assessor.

Temos uma equipe dedicada desde 1995 para

atender as necessidades dos nossos clientes em

PPP.

A equipe tem amplo conhecimento de PPP

durante as fases de construção de licitação, e

exploração dos projetos.

Seguros para a fase de Construção

•Maior Corretor

•25 aniversario

•Network Internacional

JLT Construction

•Empreiteiras e Proprietários

•Governo

•Financiadores

Para quem trabalhamos

•Mais de USD 50 milhões no Brasil

•Mais de USD 600 milhões Mundial

Prêmios anuais

•Negociação e colocação

•Redação da apólice (Taylor Made)

•Sinistros

Atuamos durante a

•> 350 projetos (> USD 30 bilhões)

•Time dedicado desde 1995•Fases de Licitação-Construção-O&M

PPP / PFI

Experiência 5 últimos anos

$21 bilhõesAmérica do Norte

$45 bilhõesAmérica Latina

$73,5 bilhõesEuropa

$9,5 bilhõesÁfrica

$50 bilhõesMédio Oriente

$8 bilhõesAustrália

$45 bilhõesÁsia

Valores totais dos Projetos (USD) segurados a través da JLT:

Projetos Construção no Brasil

Projeto: Brasil Terminal Portuário

Descrição: Remediação e construção do Terminal Portuário

Período: > 38 meses

Valor: U$ 603 milhões

Projeto: UHE Belo Monte

Descrição: Usina Hidrelétrica com Capacidade de 11.233,1 MW

Período: 96 meses

Valor: R$ 20 bilhões

Projeto: Aços Longos

Descrição: Construção dos Trecho 1 e Trecho 2, com extensões de 13,06 e 11,48Km

Período: 51 meses

Valor: R$ 2,6 bilhões

Projeto: Etanolduto Paulínia - Ribeirão Preto

Descrição: Etanolduto de aprox. 208 km, incluindo centro coletor

Período: > 20 meses

Valor: R$ 798 milhões

Nossos Valores

Colaboração.

Reconhecemos que nossos

colaboradores são os

motivadores do nosso

sucesso.

Nossos colaboradores trabalham

juntos no “time JLT”

compartilhando conhecimento,

solucionando problemas e

levando as melhores soluções

para os nossos clientes.

Agilidade.

Pensamos rapidamente,

movimentamos prontamente

e agimos decisivamente.

A JLT trabalha e se desenvolve

em um ambiente de constantes

e rápidas mudanças. Um dos

pilares de nosso sucesso é a

nossa capacidade de rápida

mudança e de pensamento ágil

e criativo, atendendo as reais

necessidades dos nossos

clientes.

Rigor.

Trabalhamos com integridade

e disciplina, defendendo o

que acreditamos.

O que realmente importa para a

JLT é fazer o que é certo – para

nossos clientes, colaboradores,

parceiros e sócios.

Contatos

JLT Re Brasil Corretagem de Resseguros

Av. Beira Mar, 200 – 8º andar

Centro - Rio de Janeiro – 20021-060

Telefone: 55 21 2220-2970

JLT Brasil Corretagem de Seguros

Av. Paulista, 854 – 5º andar

São Paulo – 01310-913

Telefone: 55 11 3156-3900


Seminário PPP | Seguro GarantiaMaio 2014

Seguro Garantia

GovernoGoverno

INSURANCE BROKERS

InvestidoresInvestidores

EMPRESA EMPRESA Mercado

SeguradorMercado

Segurador

Operação e ManutençãoOperação e

Manutenção

Construção

(EPC)

Construção

(EPC)

FinanciadoresFinanciadores EmpresaEmpresa

Seguro Garantia

Governo

Empresa

Conceito

Partes

• Tomador: Empresa Privada, Consórcio ou SPE

• Segurado

Modalidades

• Bid Bond

• Performance Bond e/ou Concessão

Contratos

• Edital

• Contrato Principal

• Apólice

Legislação

• Circular SUSEP nº 477/2013

• Lei 8.666/1993

Seguro Garantia

Investidor

Empresa

Conceito

Partes

• Tomador

• Segurado

Modalidades

• Performance Bond

• Garantias Financeiras

Contratos


• Estudo de Viabilidade Econômica do Projeto

• Apólice

Legislação


Seguro Garantia

Financiador Empresa

Conceito

Partes

• Tomador

• Segurado

Modalidades

• Completion Bond

• Garantias Financeiras

Contratos

• Edital


• Contratos de Financiamento

• Estudo de Viabilidade Econômica do Projeto

• Apólice

Legislação


Seguro Garantia

Construtor e

Fornecedor

Empresa

Conceito

Partes

• Tomador

• Segurado

Modalidades


• Fiel Cumprimento

• Perfeito Funcionamento

Contratos

• Contrato Particular entre as Partes

• Apólice

Legislação


Seguro Garantia

Operação e Manutenção

Empresa

Conceito

Partes

• Tomador

• Segurado

Modalidades


• Fiel Cumprimento

• Perfeito Funcionamento

Contratos

• Contrato Particular entre as Partes

• Apólice

Legislação


Seguro Garantia

Mercado SeguradorEmpresa

Conceito

Partes

• Tomador

• Seguradora

Direitos & Obrigações

• Tomador

• Seguradora

Contratos

• Contrato de Contragarantia

Isenção de Responsabilidade

Direito de Sub-rogação

Legislação


Seguro Garantia

Mercado SeguradorBROKER

Relevância do Broker

• Governo

• Investidores

• Financiadores

• Construção Civil

• Operação & Manutenção

• Mercado Segurador

Partes

• Tomador

• Segurado

• Seguradora

Negociação com o Mercado

• Fase Cadastral

• Subscrição preliminar de riscos

• Administração das fases do projeto

Nossos Valores

Colaboração.




sucesso.







Agilidade.












clientes.

Rigor.



que acreditamos.





Contatos




Telefone: 55 21 2220-2970



São Paulo – 01310-913

Telefone: 55 11 3156-3900


Treinamento PPPMaio 2014

PPP Project Insurances

Nick Smith, Partner, JLT Specialty

and

Carlos Romero, Placement Director, JLT Brasil

Who we are

JLT is one of the world’s largest providers of insurance, reinsurance and employee benefits related advice, brokerage and

associated services.

Our client proposition is built upon our deep specialist knowledge, client advocacy, tailored advice and service excellence. Together,

we place our clients first, champion independent thinking and expect to be judged on the results we deliver.

The value we create is driven through the personal determination of our 9,100 highly motivated and skilled people.

Where we operate

JLT has offices in 39 territories with some 9,100 employees supported by the JLT International Network

enabling us to offer risk management and employee benefit solutions in over 135 countries.

Subsidiaries

Australia

Bahrain

Barbados

Bermuda

Brazil

Canada

Chile

China

Colombia

Denmark

Finland

France

Germany

Guernsey

Hong Kong

India

Indonesia

Ireland

Japan

Macau

Associates

Austria/Central & Eastern Europe

France

Italy

Mexico

Spain

Our Mission, Strategy & Values

Focusing and

growing in

specialist

areas

• Focusing and growing in specialist areas within

our existing operations where we can offer

distinctive products , services and independent

choice.

Building our

international

reach and

relevance

• Building our international reach and relevance,

especially in the world’s high growth economies,

to better meet the needs of local multinational

clients and trading partners.

Improving

our efficiency

and

effectiveness

• improving the way we work and serve clients

through innovation and by investing in the

efficiency and effectiveness of our people,

systems and processes.

Providing a

distinctive

working

environment

• Providing a distinctive, entrepreneurial and

results-based work environment that attracts,

develops and retains the best individuals.

Operating

collaboratively

as One JLT

• Operating collaboratively as One JLT to bring

the best of JLT to our clients and trading

partners anywhere in the world.

The five elements of our strategy balance the interest of our

clients, our employees, our trading partners and our shareholders.Client First

We act in our clients’ best

interests and bring the

best of JLT to all of our

clients

Independent

We advise our clients without

influence or bias and value

innovation and creativity

Results Based

We expect to be judged and

rewarded on our

performance

Collaboration

Our people work together as

One JLT to share knowledge,

solve problems and deliver the

best solutions for our clients

Agility

Our entrepreneurial drive

gives us the freedom to take

on new challenges, think

creatively and capture

opportunities that others

cannot.

Rigour

Our work is thorough and

our solutions robust,

because it really matters to

us to do what is right – for

our clients, our people, our

trading partners and our

investors.

Mission Strategy Values

What we do –Risk & Insurance

Working in partnership with

clients to manage the key

risks they face, JLT acts as

their intermediary with

insurers and reinsurers as

well as providing related

risk management,

analytical, advisory and

other administrative

services.

Advice and

Consultancy

Brokerage

and

placement

Access to specialist insurance products

Other services

• Advising our clients on their risk requirements

• Ensuring they understand their potential risks

• Allowing clients to make informed decisions

• Providing capital raising and corporate financial

advice

• Acting as intermediaries with insurers/

reinsurers all over the world

• Using our specialist knowledge to negotiate best

terms for our clients

• Providing our clients with access to facilities and

products through bespoke agreements with

insurers

• Providing a range of related services to clients

and market counterparties such as captive and

claims management

What we do – Employee Benefits

JLT offers a comprehensive

range of employee benefits

advice and services from

pensions consultancy and

administration to employee

healthcare, wellness and

protection and from

investment consultancy and

discretionary fund

management to individual

wealth management.

Pensionand retirement services

Health and

benefits

Investment

services

Wealth

management

• Providing services to pension trustees and

corporate sponsors

• Actuarial and risk transfer consultancy

• Independent trustee services

• Members communications

• Providing advice on and implementing

employee health and benefit programmes

• Placing of health and benefit programmes

• Using JLT’s online integrated platform BenPal to

manage programmes

• Advising on investment and discretionary

management of assets for high-net-worth

individuals and pension schemes

• Offering advice and support to high-net-worth

individuals on holistic financial planning

• At retirement support and life protection

planning

Our major shareholders*

Jardine Matheson 2013 Results

Gross Revenue* US$61,380m

Underlying PBT* US$4,600m

Employees 390,000

Market Cap US$40,766m

*includes 100% of revenue from associates and joint

ventures

% Held

Ameriprise Financial Inc

MFS Investment

Management

Jardine Matheson 40.1

Employees,

Trusts & Directors

Silchester

*As at February 2014

7.0

3.7

3.0

3.0

JLT from a client’s perspective

Top 5 selection criteria when choosing a broker Ranking

JLT Marsh Aon Willis

1) Understanding the clients business and needs 8.286 8.125 7.864 7.619

2) Standard of client service 8.357 7.600 7.705 7.571

3) Policy wording advice and capability 8.500 7.950 7.977 7.143

4) Proactivity 7.357 7.075 7.136 6.667

5) Sector knowledge 9.000 8.050 7.864 7.905

November 2011

2013 Financial

2013 full year 2012 full year

Total revenue* £979.2m £880.1m

Underlying trading profit**

£185.4m £160.4m

Underlying profit before tax**

£177.4m £161.7m

Reported profit before tax

£154.6m £156.8m

* Total revenue comprises fees, commissions

and investment income

** Underlying results exclude exceptional

items

2013 Revenue by Division and Location of Client

Risk & Insurance revenue £719.4m

Employee Benefits revenue £255.2m

UK 35%

Americas 25%

Australia & New Zealand 15%

Asia 15%

Europe 8%

Rest of world 2%

JLT Specialty Limited

• JLT Specialty Limited• wholly owned• 20% of the Group• 900+ staff

• Financiers’ insurance due diligence team• 8 staff• Part of construction and real estate division• Well over 400 mandates undertaken by current team

members collectively• All sectors (Infrastructure, Natural Resources, Energy,

Process Industries, Petrochemicals, Power & Renewables)

• PPP, PFI

Projects and Insurance

Insurance Due Diligence Overview

• Review Project Risks• Review Project Agreements to understand insurance

and risk allocation• Set out Insurance requirements• Insurances to be controlled by Project• Assess adequacy of project insurance to cover

project risks

Risk Factors

• Non Political Force Majeure(Earthquake, Storm, Flood, F,L,EX, A)

• Political Force Majeure(S&T, SRCC, Munitions, War)

• Non Force Majeure(accidental damage, breakdown, defective design, plan specification or workmanship etc)

• Design Risk Interfaces• Estimated Maximum Losses

Insurance Participants in a PPP/Project Financing

SPV

Capital

Investors/Sponsors

Dividends

AUTHORITYUnitary Payment

Facility Services

LENDERSInterest &Repayments

Loans

Construction

Building Contract

Operation andMaintenance

O&M Contract

Insurers

Claims Premium

Insurance Adviser

Insurance Broker

Lenders Insurance Adviser

Insurance Adviser Insurance Adviser

Material Project Insurance

AssetRevenue

Liability

Material Damage:Construction Erection “All Risk” /

Property Damage/Industrial “All Risks” Insurance

Consequential loss: Delay in Start-up / Advance Loss of Profit

Business Interruption Insurance

Third Party Public Liability Insurance

Asset Insurances - CAR/MD

Cost of reinstatement following physical loss or damage

Additional coverage includes:

•Temporary repairs•Shoring up•Debris removal

• Plans and documents• Professional fees• Authority requirements

• Inflation on incomplete works• Inflation on reinstatement value

• Expediting expenses• Additional Costs of Completion

Marine Cargo Insurance

Revenue Insurances DSU (ALOP)/BI

• Protecting SPV loss of Gross Revenue less variable costsi.e. to cover fixed costs & debt service? (Sustained loss)

• Key issues:• CAR or MD policy triggered• SPV and Financiers interests only• Indemnity Period• Deductible• Suppliers’ and Customers’

Construction Phase Insurances

Core Construction Insurance Range

• Construction All Risks• Erection All Risks• Employers Liability• Public Liability• PI• Plant and Equipment • Motor• Ancillary Property

• Construction All Risks• Erection All Risks• Delay in start up• Public Liability• Project PI• Cargo / Cargo DSU

Annual Project

Non Core Construction Products

• Latent Defects• Environmental• Efficacy / Force Majeure• Liquidated Damages• Defective Title• Archaeological Discovery• Performance Bonds

Construction All Risks

• Sum insured based on estimated construction contract value

• Limits for natural perils• Defects in design cover• Terrorism excluded• Period of insurance and defects liability

period

Delay in Start Up

• Covers delay in the completion of the Project resulting from event insured by CAR Insurance

• Minimum Sum Insured – Debt Service and Fixed Costs

• Points to consider:• Max delay exposures – Indemnity Period• Contingent delay cover (loss damage to

third party facilities e.g. Suppliers and Customers

• Waiting Period

Third Party Liability

• Project derived legal liability of the assured arising from:

• Third Party Property Damage• Third Party bodily injury

• Best practice is covering all project parties (gives comfort of quicker claims handling)

• Key project extensions:• Cross liabilities extension needed• Contractual Liability should be included

Marine Insurance

• Covers materials for incorporation in construction project

• Includes transits by sea, air or land• Includes war, strikes, terrorism and

piracy• Sum insured based on maximum value

any one consignment

Terrorism and Political Violence

• Excluded under policies in Brazil• Can be covered by a separate policy• Global market capacity has increased• Limits are aggregated• In some countries provided by Government

e.g. France and Spain• Other countries available from insurers but

supported by reinsurance from a government backed facility e.g. UK and USA

Project Company Control

Why not Contractor or supplier?

• Procurement issues:

• Replication of Insurance Requirements from Loan Agreement into Contract (including counterparty ratings) - Time consuming, painful;

• Negotiating scope of cover, policy wording, lender clauses via Contractor’s brokers etc – Time consuming, painful, delay FC;

• Cost control – highly problematic;

• Can these be overcome?

Operational Phase Insurances

Property Damage

• “All Risks” cover is respect of loss or damage• Terrorism cover excluded• Sum insured can be based on Estimated

Maximum Loss• Machinery Breakdown• Inner limits for natural perils, riot, strikes and

civil commotion

Business Interruption

• Covers loss of revenue resulting from event insured by Property Damage Insurance

• Min Sum Insured – Debt Service and Fixed Costs

• Points to consider:• Max delay exposures – Indemnity Period• Contingent delay cover (loss damage to third

party facilities e.g. Suppliers and Customers• Waiting Period

Third Party Liability

• Covers legal liability claims for:• Death of bodily injury to third parties• Loss of or damage to third party property

• Limit will be based on location of Project and risk exposures

• Need to understand proximity of third party risks

• Products Liability• Pollution and Contamination

Compulsory Insurances

Compulsory Insurances in Brazil

• Motor third party injury liability.

• Third party injury liability for owners of marine hulls of all types.

• Bodily injury to commercial aviation passengers (civil liability).

• Civil liability for owners of airplanes.

• Workers' compensation (state scheme).

• Civil liability for construction contractors in urban zones for damage to people or

property.

• Assets granted as guarantee for loans or credit facilities of public financial

institutions.

• Surety for performance of obligations of contractors and real estate developers.

• Guarantee for payment by borrowers in construction projects.

• Property damage to divided buildings (condominiums) in accordance with Law No

4.591/64.

Compulsory Insurances in Brazil

• Insurance against fire and transportation of goods owned by corporate entities

located in Brazil or transported therein.

• Third party liability for damage to cargo transported by land or sea, in accordance

with Law No 8.374/91.

• Export credit insurance financed by government institutions, when deemed

appropriate by the CNSP, in accordance with Decree Law No 826/69.

• Crop insurance for recipients of credit from the government's National Programme

to Strengthen Family Farming.

• Personal accident insurance for professional sporting organisations.

• Professional indemnity for reinsurance brokers.

• Shipowners' liability against oil pollution.

• Travel insurance for Brazilian visitors to Schengen states.

• Green Card motor insurance requirement for vehicles travelling to other

MERCOSUR countries.

Unavailable Insurance

Uninsurability

• Difficult Test to pass– Worldwide unavailability

• Prove that prepared to stop trading• Risks vs Terms and Conditions

– Inner limits– Deductibles

• Dependent on insurance schedule being robust –standard form limits this schedule

• Unavailability references are simply a means of avoiding default in the Project Agreement

Contract of Insurance

Structure of an Insurance Policy

ScheduleInsured partiesPeriod of insuranceBusiness and/or property insuredDeductiblesSums Insured

Operative ClauseExclusionsExtensionsConditions (express terms, conditions precedent, and warranties)

Breadth & Scope

• Limits• Extensions• Exclusions• Deductible levels

As wide as is available “at reasonable and commercial terms” but taking into account contractual and technical risk mitigation (e.g. contractor creditworthiness and liquidated damages regime).

Policy Wording is Key

• Standard wordings and exclusions need to be challenged against project risks

• Information exchange and representation of risk management is key to achieve broad form placements

• Only possible if all parties buy-in

Implied Terms

• Contract of Utmost Good Faith• The obligation on both parties to disclose all

MATERIAL information, otherwise the contract can be avoided.

• Representation• Facts have to be true, beliefs have to be in

good faith• Warranty of Legality

• It is assumed the activities for which insurance are sought are legal

Implied Terms

ContributionPrinciple of indemnity is to compensate the insured and return them

to the position before the event insured against occurs. Double recovery is therefore not possible. Some policies will state the other policy is to be primary or require notice of the existence of

another policy.

SubrogationTaking over the interests of the insured. The act of one person

stepping into the shoes of another so as to benefit from that party’s rights of recovery against a third party (e.g. a defendant).

Insured to act as if UninsuredAn insured should not act any less prudently so as to cause or

exacerbate a possible claim simply because they are insured. The insured should mitigate any possible loss. Failure to give notice of a claim or settling a third party action without insurers consent may invalidate a claim. Generally these terms will be expressly stated

in a policy.

Protection of Lenders’ Interests

Insurance Due Diligence

• Financial security of selected insurance companies• Review of contracts to assess risks• Review of insurance cover• Dovetailing of the construction and operational

insurances;• Lenders Insurance Financiers’ interest

endorsements, non-vitiation etc

Financial Security of Insurers

• International Lenders seek minimum rating typically

• Standard & Poor’s A-, or• A.M.Best A-

• Otherwise seek reinsurance

Non-Admitted Insurance

Non-admitted insurance refers to the placing of insurance outside the regulatory system of the country in which the risk is located. A

non-admitted insurance policy may be one that is issued abroad or one in which the risk(s) may be included in a global master policy by an insurer that is unauthorised in the country in which the risk is located. An authorised insurer is one that has been granted permission to do business in a country (or

region) by the local supervisory authority. The text below describes the regulations that apply to non-admitted insurance

for this country.

Non-admitted insurance is not permitted because the law provides that insurance must be purchased from locally authorised

insurers with some exceptions.

Non-Admitted Insurance - Exceptions

The following insurances are presently exceptions to the general prohibition on non-admitted placements:

• insurance coverage not available in the Brazilian market (or where there is a lack of interest in providing coverage)

• temporary insurance coverage for risks abroad when the insured is an individual residing in Brazil (eg travel insurance)

• insurance subject to international treaties approved by the Brazilian Congress (eg maritime agreements)

• insurances of hull, machinery and liability in respect of vessels registered with the RBNA, according to Paragraph 2, Article 11 of Law No 9432 of 9 January 1997 (in cases where the Brazilian market does not offer prices compatible with the international market)

• insurance legally placed abroad at the time when Law 126/07came into effect.

Lenders’ Endorsements

• Lenders as a Named Insured• Gives Lenders rights under the insurance policy

• Separate Policy• Clarifying that each insured covered as if separate

cover in place for each• No duty of disclosure

• Normal duties will exist for Borrower but not Lenders• Waiver of Subrogation Rights

• Any rights the Insurer may have had against Lenders (and Borrower) are waived

• Policy to be Primary• Clarifying no contribution can be expected by the

insurer from other policies• Loss Payee

• Payment of loss proceeds into required accounts

Lenders’ Clauses

• Waivers of rights of subrogation (including vitiating acts?);

• Waiver of rights of offset;

• Waiver of duty of disclosure (Finance Parties);

• Waiver of rights of contribution;

• (Waiver rights of average/underinsurance).

Waivers

Vitiation and non invalidation• Risk of non compliance with implied and express terms and

conditions especially duty of disclosure;

• Non Invalidation protection and restriction of insurers’

rights against the party that invalidates.

Non-Vitiation

• Insurers may void policy for a number of reasons e.g. fraud, breach of warranty, misrepresentation

• Act of one party not effecting the insured interests of another

• Insurers may only give this cover if have the right to recover from party that committed the vitiating act.

Broker Letter of Undertaking

• Required from Insurance and Reinsurance Brokers

• Needed because Lenders are not Brokers Client

• Letter includes representations and obligations

Assignments

• Security over Insurance and Reinsurance Policies

• Notice and Acknowledgement

Reinsurance Assignments

• Reinsurance contract between insurer and reinsurer

• Borrower and Lenders not a party to reinsurance contract

• Borrower and Lenders want to have direct access to reinsurance cover

• Cut-through clauses• Reinsurance assignments

Insurance Market

The Market Cycle

Increasedcapacity

Increasedcompetition

Reduced ratesBroader coverage

Reduced profit

Reduced Investment

Reduced surplus

Reducedcapacity

Reduced competition

Increased ratesReduced coverage

Increased profit

NewInvestment

Increasedsurplus

5-7 Years

• Interest Rates• Catastrophes• Legislation changes• Investment income

Key Variables

Insurance Market

• Varies between countries• Largest insurers – Allianz, AXA, Zurich,

AIG• Each Country has own insurers• Local insurance requirements

• Non-admitted insurance• Language for policies• Policy wordings

Reinsurance Market

• Dominated by Munich Re and Swiss Re• Number of other large reinsurers such as

Berkshire Hathaway and SCOR• Captive Insurance Companies• Lloyd’s of London

• Insurance market place• Number of Syndicates not one company• Syndicates specialise in certain risks• Syndicates now limited liability companies

Insurance Broker

Broker’s Role

• Advisor• Risk Management Facilitator• Negotiation with project stakeholders• Negotiation with insurers for best price/cover• Placement across markets• Innovation• Claims Service and Support

Broker’s Role

TechnicalAppreciation

TechnicalAppreciation

RiskManagement

RiskManagement

ConstructionInsurance

ConstructionInsurance

A Balanced, Specialist Role not Generalist …

Thank You for Listening

Any Questions?

Nossos Valores

Colaboração.




sucesso.







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clientes.

Rigor.



que acreditamos.





Contatos




Telefone: 55 21 2220-2970



São Paulo – 01310-913

Telefone: 55 11 3156-3900

Documents

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