K.M. Dastur Reinsurance Brokers Pvt.Ltd
The only Insurance Brokers in India to be ISO 9001/2000 certified BY TUV Germany
K.M. Dastur Reinsurance Brokers Pvt.Ltd, Cambata Building, 5th Floor, 42,Jamsetji
Tata Road, Churchgate, Mumbai 400020
1
COUNTRY REVIEW INDIA
2
INDIA – A SNAPSHOT
Sovereign Democratic Republic
29 states
22 scheduled Languages / 2000 listed Dialects
World’s Seventh Largest country - area wise
World’s Second largest Population (count: 1.237
Billion) – 51 Birth a minute
Young Population – 50% of Population below 25
year
Birthplace of several Religion
GDP Growth : Current 4.2%
Highest 9.2% (2006-2007)
A major Economic Power in terms of Purchasing Power Parity.
Energy Deficit Country
KMD
OIL - STATISTICS
TABLE – 1
2012
000’s Barrels Daily
2012
000’s Barrels Daily
Oil
Consumption
Oil
Production
USA
18,555
CHINA
2012
‘000’ Million Barrels
%
Production /
Consumption
Oil Proven
Reserve
8,905
48
35
10,221
4,155
41
17.3
JAPAN
4,714
Negligible
Nil
Negligible
INDIA
3,652
894
24
5.7
MALAYSIA
697
657
94
3.7
INDONESIA
1,565
918
59
3.7
THAILAND
1,212
440
36
0.4
Country
(Source: BP – Statistical Review of World Energy 2013)
KMD
GAS - STATISTICS
TABLE – 2
(Trillion Cubic Feet)
2012 – Billion Cubic Feet
Country
Gas
Consumption
Gas
Production
%
Production /
Consumption
Proven Reserve
USA
69.7
65.7
94
300
RUSSIA
40.2
57.1
142
1162.5
CHINA
13.9
10.3
74
109.3
JAPAN
11.3
-
-
-
INDIA
5.3
3.9
74
47
INDONESIA
3.5
6.9
197
103.3
MALAYSIA
3.2
6.3
197
46.8
THAILAND
4.9
4.0
82
10.1
(Source: BP - Statistical Review of World Energy 2013)
KMD
Physical Map of India
CAIRN ENERGY
(Producing)
Onshore Assam /
North East
(Producing)
Damodar Basin
(Exploratory)
Gulf of Cambay
Basin
Mahanadi Basin
(Exploratory)
Gulf of Kutch
SBM
ONGC
Bombay High
KG Basin
• Producing
• Developing
• Exploratory
Cauvery Basin
• Producing
• Developing
• Exploratory
KMD
Insurance Market
Total number of Non Life Insurance Companies
Public Sector : 4
Private Sector : 23
One Reinsurance Company – GIC Re
Public Sector companies active in Oil and Energy Insurance. Only certain
Private Sector Companies are active in Oil and Energy.
Insurance capacity ramped up from 2004.
KMD
Insurance Markets (contd.)
(Million)
135
Market Capacity
120
117.5
105
102.5
102.5
90
75
62.5
60
47.5
45
30
32.5
32.5
27.5
27.5
15
2.5
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Market
But GIC capacity on following risk:ONGC
RIL
GSPC
ABAN
:
:
:
:
USD 150 Million
USD 150 Million
USD 75 Million
USD 75 Million
KMD
Insurance Market (contd.)
GIC
GIC
Net worth
Assets
Premium
Fac Capacity
Security
:
:
:
:
:
USD 1.77 Billion
USD 11.04 Billion
USD 34 Million (Oil and Gas)
USD 20 Million (Foreign)
USD 50 Million ( Domestic)
A- (AM Best)
New
New India
India
Net worth
Assets
Premium
Fac Capacity
Security
:
:
:
:
:
USD 1.28 Billion
USD 5.25 Billion
USD 25 Million (Oil and Gas)
USD 40 Million (Foreign)
USD 40 Million (Domestic)
A- (AM Best)
KMD
Insurance Market (contd.)
United India writing ONGC Package for nearly 30 years now.
National / ICICI have capacity of USD 10 Million.
All Treaties led by Hannover Re except ICICI led by XL Re.
Other Insurers also looking to avail Treaty Facility.
Major Reinsurers
Operation
• ACE
• AIG
• Zurich
• Lloyds
• GIC
• Trust Re
Construction
• Lloyds
• GIC
• Trust Re
KMD
Insurance Market (contd.)
Current Annual Premium - Upstream Estimated at USD 175 Million
Construction,
$15 Million
Rigs, $25 Million
Operation
(incl. COW),
$135 Million
Operation (incl COW)
Rigs
Construction
KMD
Energy Large Losses for last 5 years
Underwriting
Year
Policy
Nature of Loss
100% loss
(Mn)
2008-09
Offshore Construction
Jacket sinking
25.30
2009-10
Offshore Construction
Toppling and Damage to
Tripod Jacket
20.00
2009-10
Offshore Package
Well Blowout
65.5
2010-11
Offshore Package
Damage to SBM Mooring
Hose
21.0
2010-11
Offshore Rig
Rig sinking
235.0
2010-11
Pipe pull incident
Loss of Buoyancy tanks
30.5
2012-13
Offshore Package
Uncontrolled flow of Gas from
Well
115.00
2013-14
Onshore Package
SBM sinking
20.00
KMD
Oil and Gas Insurance
Trend
Indian Oil Companies looking to buy
Assets Overseas (Mozambique / Brazil).
ONGC Videsh Ltd (OVL) major buyer of
Assets worldwide. Investment (nearly
USD 10 Billion) in the field.
ONGC conversion of Rigs to MOPU
(Three conversions underway – more
expected)
Looking to develop Deep Water
Technology.
East Coast – growth dependent on
progress in Technology / Price of Gas.
KMD
Oil and Gas Insurance....contd.
Construction : ECV USD 1 Billion
annually
5 Rigs under Construction in yards in
India.
Market expected to grow by 10% 15% mainly due to increase in
construction activities.
KMD
Shale Gas
India embarking on Shale Gas
Exploration
Environmental issues
ONGC / Oil India only permitted now for
Exploration
KMD
Save The Tiger
KMD
Save The Tiger
KMD
Thank You
KMD