Sultan Al-Khomashi

September 2014

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September 2014

Sultan Al-Khomashi – GM P&C

Owner Controlled Insurance Program (OCIP) A missing advantage for project owners & developers

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Transport & Infrastructure

Fundamental to any society

Vital for society and economy development

Connects

people and takes the economy to whole new levels

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The Future of Modern economy

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Saudi Arabia 750bn SAR Infrastructure projects by 2020

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#1 Construction market in middle east

11th Globally in infrastructure potential investment

That brings new

Challenges to the market

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Mega Projects characteristics

• Very high cost projects

• Multi interdependent contracts

• High risk exposures

• Unique perils

• Multi-year execution programs

• Community vital projects

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Traditional insurance

Not enough

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The traditional insurance - Disadvantages

• Different insurance policies & providers

• Low quality of insurance coverage

• Insurance premiums are imbedded into the contractors cost structure

• Principal pays indirect costs

• Gaps or duplications of coverage

Project instability

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it’s time to think about …

OCIP

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What is OCIP?

The Owner Controlled Insurance Program is a

Tailor-made Policy held by the project owner

wrapping up different policies into a single program

to cover virtually all liability and loss arising from

construction project.

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OCIP covers all project phases

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Testing/handover phase

Construction phase

Operational phases

The design phase risk

OCIP is a wrapped-up package of

policies

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OCIP

Workmen’s Compensation

Operational liability

Construction All Risks

Plant and equipment coverage

Professional Indemnity

Delay in Startup

Marine Cargo

Advance Loss of profit

Who is covered under OCIP?

• Project Owner/ Principal

• Financial Parties

• Construction Contractors

• Sub-Contractors of all tiers

• Architects and Engineers

• Consultants

• Manufacturers or suppliers

• Anyone Who is "Enrolled"

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OCIP features

One Program

Control

Consistent Coverage

Dedicated Limits

No Cross Litigation

Consistent Services

Decreased Markups

High Liability limits for Small Contracts

Full cover for operation

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Peace of mind

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You will have

Additional benefits

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Risk & Loss Control

Claim Management

Better financial

arrangements

Traditional CAR/EAR insurance

Vs. OCIP

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Tra

d.

Ins

ura

nc

e

Purchased by Contractors

Limited liability

No workers’ compensations

Narrow Liability Limit

No completed operations coverage

Gaps on coverage

OC

IP

Purchased by Owner

Wide liability coverage

Can include workers compensation

Can include general liability with higher limits

Can include completed operational coverage

OCIP vs. Traditional insurance

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Potential saving in OCIP

New challenges needs..

New perspective

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New solutions

Final Slide

Tawuniya logo, contact information

Q&A

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Thank

you