Tony Dempster Herbert Smith LLP, Partner Claims Management
Tony DempsterHerbert Smith LLP, Partner
Claims Management
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
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
Claims Management
Matters to be considered:
Development of best practices for handling claims: benefit of environment but without excessive costWhat 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
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
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
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 operatorTypes of remediation coveredLimits/sub-limits including legal costsNotification requirements on insured operator under policy
Claims Management
Questionnaire: assessment of environmental damage and appropriate steps (Annex 7.4)
Underwriting assessment: useful data for claims management:
Business/activities of insuredEnvironment of the insured sites Emergency plans
Claims Management
Environmental damage/imminent threat
Type of activity : occupational/non-occupationalCausal linkFault/negligenceThird party?Initial assessment of environmental damage
Identification of applicable laws and competent authorities
Claims Management
What is possible by way of remediation?
Status report on measures initiatedSpecialists
Gathering of relevant loss information
Determination of environmental damageAssessment of significance of adverse effects/risk to human healthEstablishment of baseline condition
Identification and choice of remedial options
Monitor outcome of preventative and remedial measures
Claims Management
Future developments
Close collaboration between underwriters and claims managersCollaboration between insurers and competent authorities to enhance development of claims experience
THANK YOU FOR YOUR ATTENTION!
Brussels 13 February 2008
For more information www.cea.eu
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