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Business Descriptor
Liability Limit Benchmarks & Large Loss Profile by Industry Sector 2016
ACE and Chubb are Now One
ACE has acquired Chubb, creating a global insurance leader operating under the renowned Chubb name. Chubb is the world’s largest publicly traded property and casualty insurer, with operations in 54 countries, exceptional financial strength, and a broad range of personal and commercial insurance products.
Chubb is one of only a handful of companies in the world with the products, service and global expertise that, can fully serve the insurance needs of sophisticated commercial clients.
Chubb Bermuda offers a suite of excess casualty, professional liability and excess property insurance products providing broad coverage with sizable capacity.
When you choose Chubb, you get more than an insurance policy. Our customised solutions, excellent service, coordinated global capabilities and an expert team of industry professionals come together to deliver outstanding results to our clients and brokers.
Contents
How Much Limit is Enough? 04
Auto & Auto Parts Manufacturing Sector 06
Chemical Sector 08
Construction Sector 10
Consumer Products Sector 12
Healthcare Sector 14
Industrial Manufacturing Sector 16
Life Sciences Sector 18
Oil & Gas Sector 20
Real Estate Sector 24
Transportation Sector – Rail 26
Transportation Sector – Road 28
Utilities Sector – Energy 30
About Chubb 33
How Much Limit is Enough?
Our clients operate in an increasingly uncertain world where catastrophic losses can and do occur. How much insurance limit to buy to adequately protect against the unexpected is a critical decision every risk manager faces.
Chubb’s annual Liability Limit Benchmarks and Large Loss Profile Report provides illustrative snapshots of the types of large third party liability losses that have occurred over the last ten years within various industry sectors. In addition, the report provides data on average liability limits that companies operating within these industry sectors are purchasing from Chubb Bermuda.
Chubb Bermuda typically deploys its large-limit capacity at or near the top of a liability insurance program. Our clients often ask for an indication of the total insurance limits their peers are purchasing. This report provides our clients with a tool for benchmarking their insurance purchasing decisions against peers, and helps to demonstrate the potential scope of large, unexpected losses they could experience within their respective industries.
We generate our limits benchmarking data using a variety of exposure metrics that are unique to the industry in question. For example ‘daily throughput capacity’ is one metric considered in evaluating risk for a refining company, whereas ‘miles of track’ is one metric used in analyzing railroad risk. Our ability to customize data allows us to provide meaningful and relevant industry analytics to assist clients, both current and prospective, in making informed decisions.
Chubb is pleased to provide our annual Liability Limit Benchmarks and Large Loss Profile Report as an additional tool to help you determine how much limit you require.
4
Have You Considered These Exposures?
– Driverless Cars
– Internet of Things
– 3-D Printing
– Deep Pocket
– Increasing Defense Costs
– Electronic Data Event
– Supply Chain Risk Management
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2005 Multiple fatalities in a bus accident during Hurricane evacuation caused by insufficient lubrication of a rear axle
USA $88 million
2005 Alleged speed control deactivation malfunction creating a “false park” USA $32 million
20051 Alleged ignition switch defect USA $870 million2
2005 Seatbelt defect failed during an accident resulting in serious injury USA $19 million
2006 Seat collapse during collision resulted in serious injuries USA $25 million
2006 Automobile crashed into pole leaving passenger paralyzed USA $33 million
2006 Defective latch for the windshield failed during accident resulting in serious injury
USA $20 million
2007 Seat collapse during collision resulted in serious injuries USA $43 million
2007 Tire defect caused vehicle accident resulting in multiple injuries and a fatality
USA $33 million
2007 Tire defect caused vehicle accident resulting in multiple injuries USA $23 million
2008 Airbag deployment caused multiple fatalities resulting in vehicle recalls
USA $1.6 - $4 billion3
2009 Sudden unintended acceleration of vehicle engines resulting in injuries USA $1.6 billion
2009 Serious injury from auto accident caused by separated tire tread USA $42 million
2010 Defective seatbelt failed to prevent serious injury in accident USA $55 million
2011 Defective steering caused accident resulting in multiple fatalities and injuries
USA $240 million
2011 Tour Bus crash resulted in multiple fatalities and injuries USA $40 million4
2012 Fiery automobile crash results in fatality of a minor USA $150 million
2015 Alleged defective airbags using same explosive compounds as other manufacturer of defective airbags
USA Pending
12015 Disposition Date 2Proposed Settlement 3Estimate 4Demand
Auto & Auto Parts Manufacturing SectorCompanies engaged in the design, development, assembly, manufacturing, marketing, distribution, and sale of motor vehicles and component parts.
6
<25Revenues ($b)
>25
600
400
500
300
200
100
0
Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
Have You Considered These Exposures?
– Increasing Defense Costs
– Waste Water Contamination
– Endocrine Distruptors
– Genetically Modified Organisms
– Deep Pocket
– Extreme Weather
– Nano Technology
– Persistent Organic Pollutants
– Counterfeiting
– Supply Chain Risk Management
– Prevalence of Publically Available Data
– Electronic Data Event
– M&A
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2005 Material used in product broke down USA $40 million
2006 Alleged genetically modified rice entered the crops of commercially grown rice
USA $934 million1
2009 Explosion at petrochemical plant with multiple fatalities France Pending
2009 An empty sulphuric acid tank overturned at a plant with injuries France Pending
2010 Toxic product contaminated water systems USA $105 million
2010 Sealant vapors ignited causing explosion that resulted in serious injuries USA $11 million
2010 Third party damage from herbicide application USA $1.7 billion
2012 Defective spray insulation emitted toxic chemicals into the air USA Pending
2012 Fire/explosion on a vessel inside a facility resulted in multiple deaths and multiple injuries
Thailand $296 million
2013 Fire/explosion occurred at a storage and distribution facility that resulted in multiple deaths, injuries and property damage
USA $101 million
2013 Fire/explosion at facility resulted in third party property damage, personal injury, and pollution
USA Pending
2014 Pesticide alleged to have harmed insect population Canada/USA
$450 million2
2014 Waste treatment chemical stored in truck exploded at facility and resulted in several injuries
USA Pending
2015 Explosion at chemical plant resulted in injuries Spain Pending1 Inclusive of Economic Loss 2 Demand
Chemical SectorCompanies engaged in the research, development, manufacturing, marketing and distribution of petrochemicals, basic and specialty chemicals, agricultural chemicals, and chemical intermediates.
8
<5 5-15Assets ($b)
>15
800
500
600
700
400
300
200
100
0
Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
Have You Considered These Exposures?
– Eco-Friendly/Green Materials
– 3-D Printing
– P3s
– Smart Buildings
– Electronic Data Event
– Unmanned Aerial Vehicles
– Extreme Weather
– Deep Pocket
– Increasing Defense Costs
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2005 Worker thrown from crane that broke USA $23 million
2005 Excavation led to landslide that damaged properties USA $80 million1
2006 Tunnel collapse USA $54 million
2006 Scaffolding frame collapses resulting in injury USA $13 million
2006 Corroded metal roof caused fall and resultant injury USA $17 million
2006 Auto accident resulting in a fatality and serious injury USA $45 million
2007 Bridge collapse USA $73 million
2008 Laborer fell off roof at construction site USA $62 million
2008 Crane collapse USA Confidential Settlement
2008 Scaffold’s tin roof collapsed while worker was standing on it resulting in injuries
USA $17 million
2009 Workers fell to their death while working on exterior of apartment USA Confidential Settlement
2009 Defective pipes damaged equipment and other property USA $107 million
2009 Motorcyclist accident resulted in serious injury USA $20 million
2009 Fire starting from welding activity caused neighboring property damage USA $30 million
2010 Concrete slab fell from a parking garage entryway resulting in one fatality and multiple injuries
USA $31 million
2010 Passengers sustained injuries in collision USA $42 million
2010 Worker fell while working on roof USA $34 million
2010 Excavation work caused pipeline explosion resulting in multiple injuries and a fatality
Canada $27 million
2012 Crane collapsed during Hurricane USA Pending
20122 Occupational disease Iraq $85 million
2013 Crane collapse resulted in life changing injury USA $44 million
2013 Demolition practices on building caused neighboring store collapse USA Pending
2015 Scaffolding collapse resulted in multiple fatalities USA Pending
2016 Crane collapse resulted in fatality USA Pending
1 Inclusive of 1st Party Damages 22012 Disposition Date
Construction SectorCompanies engaged in design, engineering, development and construction.
10<2.5 2.5-10
Revenues ($b)>10
1200
800
1000
600
400
200
0
Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
Have You Considered These Exposures?
– Internet of Things
– 3-D Printing
– Nano Technology
– Endocrine Distruptors
– Counterfeiting
– Electronic Data Event
– Obesity
– Food Safety
– Brain Injury
– Genetically Modified Organisms
– Increasing Defense Costs
– Deep Pocket
– Prevalence of Publically Available Data
Consumer Products SectorCompanies engaged in the manufacturing, distribution and sale of food, beverage or other consumable goods and products.
12
1-10 10-20Revenues ($b)
>20
600
400
500
300
200
100
0
Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2005 Defective product broke resulting in fatality USA $157 million
2005 Gas control valve failed resulting in explosion USA $50 million
2006 Secondary product recall Worldwide $429 million1
2008 Toys withdrawn from market due to an excess amount of lead USA $66 million
2008 Recall of tainted meat products linked to a listeriosis outbreak Canada $21 million
2008 Alcohol sold to minor led to fatal vehicle accident USA $717 million2
2008 Defectively designed booster seat caused serious injury during an auto accident
USA $26 million
2009 Fire/explosion and roof collapse at food manufacturing plant USA Unknown
2010 Alleged zinc poisoning from product resulting in neurological injury USA >$400 million
2010 Explosion at facility caused severe injuries USA $179 million
2010 Product contamination USA $33 million
2010 Plaintiff failed to inspect tire tread resulting in a vehicle accident and a fatality
USA $24 million
20113 Defective plumbing systems Canada/USA $200 million
2011 Defective heater started fire which resulted in a fatality USA $47 million
2012 Employee unlawfully disposed of various hazardous wastes and confidential customer information
USA $17 million
20124 Concussion injuries USA $768 million5
2012 Footwear alleged to cause health risks USA $40 million
2012 Gender discrimination USA $31 million
2013 Secondary product recall New Zealand $272 million
2014 E.coli contaminated food products USA Pending
2015 Plaintiff alleged developing cancer after utilizing product over multi-year period
USA $72 million
2015 Defective Plumbing Systems USA $139 million
1 Estimate 2 Total Loss/Liability Apportioned 3 Disposition Date 4 Filing Date 5Proposed Settlement
Have You Considered These Exposures?
– Electronic Data Event
– Rising Healthcare Costs
– Rogue Doctors/Nurses
– Improper Sterilization of Equipment
– Hospital Acquired Infections
– 3rd Party Equipment Leasing
– Emergency Preparedness
– Employee Drug Abuse
– Increasing Defense Costs
– Errors in Diagnosis
– Antibiotic-Resistant Pathogens
– Robotic Surgery
– Internet of Things
– Behavioral Health
– Medical Tourism
– Post-Surgical Complications
– 3-D Printing
– Chronic Disease Management
–
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2005 Class action lawsuit alleging gross negligence in reusing syringes resulting in Hepatitis C outbreak between 2004 and 2008
USA $524 million
2005 Doctor’s failure to diagnose resulting in permanent injury USA $70 million
2005 Failure to have an emergency protocol in place before, during and after a hurricane caused personal injury
USA $25 million
2006 Sexual assault and molestation by nursing assistant USA $67 million
2006 Doctor delayed delivery resulting in brain damage and quadriplegia USA $144 million
2007 Doctors misdiagnosed complications from surgery resulting in injury USA $178 million
2007 Unnecessary medical procedures including the implantation of a pacemaker
Germany $67 million
2008 Doctor delayed delivery resulting in brain damage USA $79 million
2009 Social workers missed signs of abuse on a minor/infant USA $166 million
2009 Doctor delayed delivery resulting in cerebral palsy USA $75 million
2009 Negligent nurses caused brain damage to a child USA $33 million
2009 Medical malpractice caused severe injury to child USA $55 million
2009 Nursing home patient died from dehydration USA $38 million
2009 Hospital failure to diagnose in a timely manner resulted in amputation USA $62 million
2010 Hospital staff delayed performing urgent C-section resulting in permanent brain injury to baby
USA $55 million
2010 Negligence with processing tainted organs caused serious injury USA Pending
2010 Class action against pediatrician for sexual abuse of multiple children USA $123 million
2011 Drug overdose resulting in a fatality USA $30 million
2011 Doctors failed to diagnose a life-threatening infection leading to amputation
USA $25 million
2011 Doctors failed to diagnose a life-threatening infection leading to amputation USA $32 million
2011 Alleged experimental surgery on an infant resulted in serious permanent injury
USA $30 million
2012 Robotic surgery failure resulted in death of patient USA Pending
2012 Failure to adequately diagnose mental health of patient resulted in third party fatalities
USA Pending
2012 Mistakenly operated on wrong body part resulting in fatality USA $21 million
2014 Creutzfeldt-Jakob disease resulted from contaminated instruments USA Pending
2014 Sterilization malpractice resulting in multiple fatalities India Pending
2014 Alleged patient exposure to life-threatening disease as a result of improperly sterilized surgical tools
Canada Pending
2015 Plaintiff contracted “superbug” in the hospital when exposed to a contaminated instrument
USA Pending
Healthcare SectorHospitals (not for profit and for profit), Teaching universities/medical schools, Long-term care/assisted living facilities, Managed Care Organizations, Health Maintenance Organizations (HMOs), Preferred Provider Organization (PPOs), Physician-Hospital Organizations (PHOs) and Clinical Trial/Contract Research Organizations.
<1,000 1,000-5,000Beds
>5,000
500
300
400
200
100
0
14
Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
Have You Considered These Exposures?
– Supply Chain Risk Management
– 3-D Printing
– Internet of Things
– Nano Technology
– Electronic Data Event
– Deep Pocket
– Increasing Defense Costs
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2005 Gas water-heater exploded resulting in one fatality USA $48 million
2005 Auto accident resulted in serious injury to child USA $23 million
2005 Defective equipment resulted in serious injury USA $20 million
2006 Fire resulting in bodily injury at manufacturing plant Germany $29 million
2007 Alleged Bulldozer design defect caused fatality USA $40 million
2007 Defect in boat design caused accident and resulted in serious injuries USA $31 million
2007 Wildfire started from logging operations USA $47 million
2007 Auto accident resulted in serious injury USA $24 million
2008 Employee discrimination USA $17 million
2008 Shipyard vessel fire caused property damage USA $46 million
2009 Alleged Forklift design defect and failure to install safety features resulted in operator being crushed
USA $34 million
2010 Plant’s reservoir broke and flooded town with toxic mud, resulting in property damage and multiple fatalities
Hungary Pending
2010 Defective chain caused serious injury USA $44 million
2010 Class action complaint of an alleged product defect that caused third party property damage
USA $23 million
2012 Defective fireplace resulting in burn injuries Canada Pending
2012 Auto accident resulted in fatality USA $281 million
2016 Occupational Disease South Korea
$85 million
Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
Industrial Manufacturing SectorCompanies engaged in the design, development, assembly, manufacturing and sale of industrial equipment and component parts used in various industries.
16
1-7.5 7.5-20Assets ($b)
>20
800
600
500
700
400
300
200
100
0
Have You Considered These Exposures?
– Biosimilars
– Nano Technology
– 3-D Printing
– Gene-Testing
– Internet of Things
– Counterfeiting
– Supply Chain Risk Management
– Electronic Data Event
– Increasing Defense Costs
– Deep Pocket
– M&A: New Capital/Financial Models/Emerging Markets
– Prevalence of Publically Available Data
– Regulatory Changes
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2005 Hernia patch recall USA $184 million
2005 Defective implantable defibrillator devices and pacemakers resulting in injuries
USA $240 million
20051 Gender discrimination USA $153 million
2005 Settlement of personal injury suits alleging pain drugs caused heart attacks and strokes
USA $745 million2
2006 Diabetes drug alleged to cause cancer and other injuries USA $9 billion
2006 Contraceptive patch linked to blood clots USA Confidential Settlement
2006 Contact lens solution alleged to cause eye infection Worldwide $250 million
2006 Faulty leads attached to pacemakers/defibrillators resulted in multiple fatalities
USA $268 million
2006 Prescription drug allegedly caused a variety of side-effects including behavioral changes
USA $300 million
2006 Alleged design defect and failure to warn resulting in a patient contracting Hepatitis C
USA $775 million
20063 Antipsychotic drug alleged to have caused diabetes and other injuries USA $1.4 billion
2007 Pain medication alleging addictive potential and can cause death from overdose
USA $750 million2
2007 Life-changing injuries alleged to have been caused by elective injections USA $212 million
2008 Contraceptive device linked to blood clots USA $100 million
2008 Alleged pelvic mesh devices caused serious and life-changing injuries USA $1.6 billion
2009 Protease inhibitor drug alleged to increase patients risk of death USA $80 million
2009 Experimental drug used on children Nigeria $75 million4
2010 Epilepsy drug allegedly marketed for off-label use USA $142 million
2010 Alleged faulty hip implant design resulted in injuries and replacement USA $4.5 billion
2011 Blood thinning drug caused serious injuries and fatalities USA $650 million5
2012 Defective surgical stapler misfired causing serious permanent injury USA $80 million
2012 Hemodialysis products alleged to cause serious injury and or death USA $250 million
2012 Patients who took hypothyroidism drug claim to suffer serious side effects Israel Pending
2012 Meningitis contamination of injectable during pharmaceutical compounding
USA $200 million2
2012 Hip replacement lawsuits USA $1.4 billion
2014 Serious injuries and or death alleged to result from Hormone Replacement Therapy
USA Pending
1 Disposition Date 2 Estimate 3 MDL Consolidated 4 Inclusive of Fines and Penalties 5 Proposed Settlement
Life Sciences SectorCompanies engaged in the research, development, manufacturing, marketing, distribution, or sale of pharmaceuticals, biologics and medical products/ devices, including biomedical research/technology.
<5 5-10Revenues ($b)
>10
500
300
400
200
100
0
18
Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
Have You Considered These Exposures?
– Hazardous Material Haulage & Storage
– Hydraulic Fracturing – Seismic Activity – Air/Noise Pollution – Regulatory Changes – Methane Migration
– Aging Infrastructure/Fleet
– Extreme Weather
– Flood Scouring
– Frontier Drilling
– Grading
– Sink Holes
– Urban/HCA Footprint
– Electronic Data Event
– Strength of Contract Indemnifications
– Prevalence of Publically Available Data
– Managing Cycles
– M&A
– Unmanned Aerial Vehicles
– Deep Pocket
– Increasing Defense Costs
20
Oil & Gas Sector
21
Oil & Gas Sector
Companies engaged in exploration, production, refining, processing, marketing and distribution of natural gas, oil, liquids and derived products, including contract drilling and other oilfield products and services.
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2005 Fire/explosion at oil storage plant UK $1.5 billion
2005 Oil tank spill during Hurricane USA $366 million1
2005 Fire/explosion at refinery USA >$2 billion
2006 Broken gas well caused fatalities Indonesia $100 million
2006 Ship unloaded waste in ocean resulting in fatalities and injuries Ivory Coast $468 million
2006 Oil spill USA $245 million
2007 Oil spill Mexico $45 million
2007 Fire/explosion at natural gas procession plant USA $83 million
2008 Fire/explosion at refinery USA $150 million
2009 Oil spill Australia $160 million
2010 Gulf of Mexico subsea well blowout with multiple fatalities USA >$16 billion
2010 Pipeline leak USA $1.2 billion
2010 Coal mine explosion with multiple fatalities USA $210 million
2010 Oil refinery explosion USA $39 million
2011 Oil Spill Brazil $42 million
2011 Class action resulted after oil spill USA Pending
2011 Offshore oil leak China $267 million
2012 Gasoline spill due to a ruptured pipeline USA Pending
2012 Oil spill Canada Pending
2012 Explosion at oil refinery resulted in multiple fatalities Venezuela $1.8 billion1
2012 Sinkhole resulted in contamination USA $48 million
2013 Oil pipeline rupture USA Pending
20132 Water well contamination USA $816 million3
2014 Oil rig explosion resulted in multiple fatalities and injuries USA Pending
2014 Oil rig explosion resulted in a fatality and several injuries USA Pending
2015 Oil rig explosion resulted in multiple fatalities and injuries Brazil Pending
2015 Gas leak at storage facility USA Pending
1 Inclusive of 1st Party Property Damage or Economic Loss 2 Dispostion Date 3 Award Apportioned Based on Market Share
Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
Oil & Gas Sector
Refining Exploration & Production
Drilling Pipeline
Contractors
22
<150K 150-500KRe�ning Capacity (bpd)
>550K
400
600
200
100
300
500
0<500K 500-1,000K
Daily Production (boe/d)>1,000K
1200
600
1000
800
200
400
0
<45Number of Rigs
>45
800
700
300
500
600
400
100
200
0<15,000 15,000-50,000
Miles of Pipe>50,000
800
400
600
200
0
<10Revenues (b)
>10
600
300
500
400
100
200
0
Have You Considered These Exposures?
– Eco-Friendly/Green Construction
– Smart Buildings
– Internet of Things
– Security
– Unmanned Aerial Vehicles
– Airborne Contaminants
– Contingent Risks/Deep Pocket
– Increasing Defense Costs
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2006 Failure of security guards to perform duties USA $55 million
2007 Shooting at a restaurant resulting in paralysis USA $13 million
2007 Multiple fatalities in an apartment fire USA $29 million
2007 Scaffolding accident resulted in injury USA $51 million
2007 Employees beat guest after he exited facility USA $32 million
2008 Carbon monoxide leak caused severe injury USA $17 million
2008 Security guard severely beaten when he confronted intruder USA $25 million
2008 Guest fell from alleged improperly maintained balcony USA $33 million
2008 Hotel guest privacy violated USA $55 million1
2009 Sexual assault by resident USA $20 million
2009 Scaffolding accident resulted in injury USA $12 million
2009 DUI auto accident resulted in fatality USA $40 million
2009 Stabbing inside restaurant & bar resulted in fatality USA $40 million
2010 Child fatality after being struck by a truck USA Pending
2010 Security guard severely injured plaintiff USA $58 million
2010 Gas explosion in apartment USA $26 million
2010 Security guards failed to protect employees resulting in fatalities USA $39 million
2011 Carbon-monoxide poisoning in apartment caused serious injury USA $28 million
2011 Fatality of minor in bicycle accident USA $13 million
2012 Apartment floor collapsed resulting in multiple injuries USA $25 million
2012 Restaurant alleged lack of security resulted in patron being beaten to death USA $53 million
2014 Plaintiff attacked by an assailant in front of her condo entrance USA Pending
2014 Lack of security alleged after fatal shooting in parking lot USA Pending
2015 DUI resulted in fatality USA $60 million
2015 Alleged negligence in the control and drainage of a dam resulted in damage to thousands of homes
USA Pending
1 Liability Apportioned 51% / 49%
Real Estate SectorCompanies engaged in the ownership, operation or management of premises/ occupancy risks including but not limited to hotels, commercial buildings, residential buildings, and arenas/stadiums.
24
Hotels and Leisure Financial Institutions and Other
Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
<800Assets ($b)
>800
500
300
400
200
100
0<10
Assets ($b)>10
500
300
400
200
100
0
Have You Considered These Exposures?
– Aging Asset Infrastructure
– Aging Fleet
– Extreme Weather
– Hazardous Material Haulage & Storage
– Regulatory Changes
– Fatigue Risk Management
– Behavioral Health
– Prevalence of Publically Available Data
– Deep Pocket
– Internet of Things
– Increasing Defense Costs
– Electronic Data Event
Transportation Sector – RailCompanies engaged in the transportation of passengers and/or products by rail.
26
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2005 Commuter train collision USA $39 million
2005 Derailment of train carrying hazardous materials resulted in multiple fatalities
USA Confidential Settlement
2005 Train derailment caused fuel spill Canada $125 million
2005 Commuter train derailed at track switch resulting in a serious injury USA $30 million
2007 Crossing grade accident with multiple injuries USA $49 million
2008 Train collided with a tractor trailer resulting in multiple injuries USA Pending
2008 Commuter train collided with freight train USA $200 million
2009 Train derailment resulted in fire/explosion USA $36 million
2009 Train derailment with multiple fatalities Italy Unknown
2010 Train collision with multiple fatalities Belgium $68 million
2012 Failed to properly maintain and inspect track causing injuries USA Pending
2013 Commuter train derailed resulting in multiple fatalities and injuries USA $28 million
2013 Train derailment resulted in multiple fatalities, injuries, and property damage
Canada $446 million1
2014 Airport train derailment resulted in multiple injuries USA Pending
2014 Train derailment resulted in oil spill USA Pending
2014 Train collided with a tractor trailer resulting in multiple injuries USA Pending
2015 Train filled with smoke after electrical malfunction causing smoke inhalation injuries
USA Pending
2015 Train collided with a vehicle resulting in multiple injuries and fatalities USA Pending
2015 Late braking resulted in derailment and multiple fatalities France Pending
2015 Freight train derailment resulted in property damage, injury, and the evacuation of two towns
USA Pending
2015 Freight train derailment resulted in petroleum product spill Canada Pending
2015 Train derailment resulted in hazardous materials spill Australia Pending
2015 Train derailment resulted in fatalities and multiple injuries USA Pending
2015 Commuter train crashed into truck resulting in fatalities and injuries USA Pending
2015 Two commuter trains crashed head-on resulting in fatalities and multiple injuries Germany Pending
1 Proposed Settlement
Rail Freight Rail Passenger
Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
<20,000 20,000-40,000Track Miles
>40,000
1400
1200
1000
800
600
400
200
0
<10,000,000Ridership
>10,000,000
700
400
600
300
500
200
100
0
Have You Considered These Exposures?
– Internet of Things
– Driverless Trucks
– Extreme Weather
– Fatigue Risk Management
– Behavioral Health
– Electronic Data Event
– Deep Pocket
– Increasing Defense Costs
Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
28
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2005 Van collision USA $132 million
2005 Bus collision resulted in multiple fatalities and injuries Canada $23 million
2005 Highway maintenance worker killed by a tractor-trailer USA $23 million
2005 Bus stuck a pedestrian at a crosswalk USA $19 million
2005 Truck rear-ended vehicle that had stopped USA $15 million
2005 Taxi crash resulted in passenger sustaining brain damage USA $26 million
2006 Rental truck rolled over plaintiff USA $84 million
2006 Tractor-trailer accident resulted in serious injuries USA $18 million
2007 Vehicle hit by a tractor trailer USA $65 million
2007 Trucks collided resulting in injury USA $17 million
2007 Trailer-tractor ran a red light resulting in multiple fatalities USA $40 million
2007 Bus lost control on icy roads resulting in multiple injuries USA $16 million
2007 Truck allegedly racing crashed resulting in multiple injuries and fatalities USA $16 million
2008 Tractor-trailer accident resulted in serious injury USA $18 million
2009 Plaintiff’s vehicle collided with a parked truck resulting in multiple fatalities
USA $151 million
2010 Multi-vehicle collision when car was struck by tractor-trailer USA $37 million
2010 Semi-tractor collision with bus resulted in serious injury to the bus driver USA $35 million
2010 Collision with tanker truck resulted in fatality USA $30 million
2010 Truck accident resulted in serious injury USA $17 million
2010 DUI manslaughter and vehicular homicide USA $46 million
2010 Patient injured when ambulance rear-ended a truck USA $104 million
2011 Semi tractor-trailer accident resulting in multiple fatalities USA Pending
2011 Bus door trapped passenger resulting in serious injuries USA $17 million
2011 Tractor-trailer accident resulted in multiple fatalities USA $157 million
2011 Tractor-trailer collided with a pick-up truck USA $165 million
2012 Tour bus accident resulting in multiple injuries USA Pending
2012 Dump truck accident with school bus resulting in a fatality USA Pending
2012 Bus accident resulting in multiple injuries USA Pending
2012 Bus hit and seriously injured pedestrian USA $21 million
2012 Tractor-trailer hit and seriously injured cyclist USA $35 million
2012 Vehicle accident resulted in child fatality USA $32 million
2013 Automobile crash resulted in fatality USA Pending
2013 Passenger fell out of bus’ side door resulting in fatality USA Pending
2014 Truck hit and injured a pedestrian crossing the road USA Pending
2015 Tractor-trailer collision resulted in fiery crash killing students USA Pending
Transportation Sector – RoadCompanies engaged in the transportation of passengers and/or products by roadway.
<3Revenues ($b)
>3
300
350
400
250
150
200
100
50
0
Have You Considered These Exposures?
– Unmanned Aerial Vehicles
– Aging Asset Infrastructure
– Extreme Weather
– Asset Decommissioning
– Electronic Data Event
– Vulnerability to Solar Flares/ Geomagnetic Storms
– Flood Scouring
– Power Generation – Noise Pollution
– Pipeline Maintenance/ Cleaning
– Smart Grid Advancements
– Carbon Capture & Storage
– Urban/HCA Footprint
– Renewable Energy
– Increased Regulation – Transitioning from Coal – Solar
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Utilities Sector – Energy
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Utilities Sector – EnergyCompanies engaged in the generation, transmission and distribution of electricity including the transmission or distribution of gas.
Sample Large Losses for Industry - 10 year
Date of Loss
Loss Details
Location Incurred Amount
2005 Water from hydroelectric power plant damaged nearby property USA $173 million
2007 Wildfire USA $2.2 billion
2007 Utility company vessel crashed into anchored oil tanker causing oil spill China $142 million
2007 Wildfire USA $190 million
2007 Wildfire USA $180 million
2008 Impoundment failure USA $1.1 billion1
2008 Gas line explosion resulted in fatality and injuries USA $25 million
2009 Explosion at hydroelectric plant with multiple fatalities Russia 3rd Party Unknown
2009 Electrocution caused fatality USA $109 million
2009 Bushfire resulted in multiple fatalities and property damage Australia $379 million
2009 Bushfire resulted in property damage Australia $40 million
2010 Pipeline explosion with multiple fatalities and third party property damage
USA $600 million
2010 Natural gas pipeline explosion with multiple fatalities USA $27 million
2012 A natural gas explosion that multiple injuries and property damage USA Pending
2012 Downed power line caused electrocution and resulted in fatality USA Pending
2013 Tree collapsed causing a fatality and multiple injuries USA Pending
2013 Gas explosion resulted in fatality and multiple injuries USA Pending
2013 Multiple fatalities as a result of electrocution USA Pending
2013 Alleged negligence during maintenance resulting in serious injuries USA $22 million
2014 Gas explosion at residential building resulted in multiple fatalities and injuries
USA Pending
2014 Contamination of drinking water USA Pending
2014 Home explosion resulted in fatality and multiple injuries USA Pending
2014 Alleged negligence resulted in apartment explosion USA Pending
2015 Gas leak caused explosion at residence resulting in third party property damage and several injuries
USA Pending
2015 Natural gas leak resulted in alleged illnesses and mandatory evacuation of a few thousand families
USA Pending
1 Inclusive of 1st Party Property Damage
Utilities Sector – Energy
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Average Program Limits Purchased Based on Chubb Bermuda’s 2015 Portfolio ($M) (inclusive of Self-Insured Retentions)
Gas Electric
Combined Gas & Electric
<15,000 15,000-35,000Miles of Pipe
>35,000
800
700
600
500
300
200
400
100
0<1.5 1.5-4.5
Number of Customers (m)>4.5
500
300
200
400
100
0
<2 2-4Number of Customers (m)
>4
900
800
700
500
600
300
200
400
100
0
About Chubb
Chubb is the world’s largest publicly traded property and casualty insurer. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. Chubb Limited, the parent company of Chubb, is listed on the New York Stock Exchange (NYSE:CB) and is a component of the S&P 500 index. Chubb’s core operating insurance companies maintain financial strength ratings of AA by Standard& Poor’s and A++ from A.M. Best.
Chubb’s insurance operations in Bermuda offer insurance products and services through Bermuda and non-US based intermediaries.
On January 14, 2016, ACE Limited acquired the Chubb Corporation, creating a global insurance leader operating under the renowned Chubb name. While we are now branded Chubb, insurance coverages in Bermuda continue to be underwritten by ACE Bermuda Insurance Ltd. which is regulated by the Bermuda Monetary Authority. Coverages in Dublin continue to be underwritten by ACE Bermuda International Insurance (Ireland) Limited which is regulated by the Central Bank of Ireland. These entities will change to Chubb Bermuda Insurance Ltd and Chubb Bermuda International Insurance Ireland DAC respectively during the second quarter of 2016.
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Contact Us
Chubb Building 17 Woodbourne Avenue Hamilton HM 08 Bermuda T 441.295.5200 F 551.295.5521
Dublin Head Office 5 George’s Dock International Financial Services Centre Dublin 1 Ireland T +353 (0)1 440 1700
London Branch Office Chubb Building 100 Leadenhall Street London EC3A 3BP United Kingdom T +44 (0)20 7173 7000
For more information about Chubb Bermuda’s insurance products please contact your Bermuda broker. A full list of Bermuda-based brokers can be found on the Bermuda Insurance Market website at www.bermuda-insurance.org. Chubb Bermuda is not licensed in the U.S. as an admitted insurer nor is it an eligible excess and surplus lines insurer.
The information contained in this document is intended for general marketing purposes and information only. For terms and conditions of coverage, please refer to the specific policy wording. This information is intended to be illustrative of the average limits of liability being purchased by companies within particular industry sectors, and of notable large loss industry events which have given rise to liability claims. The Estimated Loss Amounts may or may not include defense costs. The Estimated Loss Amounts shown for earlier years have not been trended or developed.
No inference should be drawn from this loss information that such an event or resultant liability claim would (or would not) be covered by a Chubb Policy.
Chubb. Insured.SM Copyright © 2016, Chubb. All rights reserved.