Tony Dempster

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Claims Management

• Tony Dempster
• Herbert Smith LLP, Partner

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Claims Management

• Introduction
• EEWG challenges presented by the new ELD regime
• Purpose
• Enhance development of claims expertise needed to
  cope with challenges that ELD claims present
• Initiate discussions with competent authorities
  to develop plans for co-operation insurers will
  expect degree of control and influence in
  decision making process on remediation if
  expected to pay costs
• Assist generally with the development of
  insurance products to provide effective cover for
  operators responsibilites under ELD

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Claims Management

• CEA Paper on Enhancing Sustainable Insurance
  Solutions Claims Management (Section 5)
• New claims management skills likely to be
  required
• Insurers wealth of experience in handling
  claims, including highly complex and
  technical claims
• Involved at a very early stage taking control of
  claims under existing civil liability regimes
  covering traditional damage
• Insurance industry less experience of the process
  under the rules of public/administrative law
• ELD also introduces new liabilities and remedial
  measures of which key stakeholders involved
  (including the insurance industry) have very
  little experience
• Insurers need to develop new expertise in
  handling claims associated with those liabilities

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Claims Management

• Matters to be considered
• Development of best practices for handling
  claims benefit of environment but without
  excessive cost
• What techniques exist to restore environmental
  damage in the most effective and cost efficient
  manner?
• Exercise by insurers of control of claims
  development of effective working relationships
  with competent authorities

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Claims Management

• Call for close co-operation with the competent
  authority
• Competent authority will either approve
  preventative or remedial action by responsible
  operator or require responsible operator to take
  necessary preventative or remedial measures
• Insurers significant interest and wish to be
  involved in this decision process

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Claims Management

• Development of effective working relationships
  with the competent authorities to ensure insurers
  able to manage business properly and competent
  authorities comply with their responsibilities
• More important in cases of cross-boarder damage
  involving more than one competent authority

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Claims Management

• Claims handling questionnaire for steps to be
  taken
• Claims handling determined by scope and limits of
  insurance policy
• Scope of cover vs. liability of insured operator
• Types of remediation covered
• Limits/sub-limits including legal costs
• Notification requirements on insured operator
  under policy

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Claims Management

• Questionnaire assessment of environmental damage
  and appropriate steps (Annex 7.4)
• Underwriting assessment useful data for claims
  management
• Business/activities of insured
• Environment of the insured sites
• Emergency plans

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Claims Management

• Environmental damage/imminent threat
• Type of activity occupational/non-occupational
• Causal link
• Fault/negligence
• Third party?
• Initial assessment of environmental damage
• Identification of applicable laws and competent
  authorities

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Claims Management

• What is possible by way of remediation?
• Status report on measures initiated
• Specialists
• Gathering of relevant loss information
• Determination of environmental damage
• Assessment of significance of adverse
  effects/risk to human health
• Establishment of baseline condition
• Identification and choice of remedial options
• Monitor outcome of preventative and remedial
  measures

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Claims Management

• Future developments
• Close collaboration between underwriters and
  claims managers
• Collaboration between insurers and competent
  authorities to enhance development of claims
  experience
• THANK YOU FOR YOUR ATTENTION!

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For more information www.cea.eu
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