what happened in the engineering insurance market in the ......brazil 7.1 latin america & canada...

IMIA Conference 2016What happened in the Engineering Insurance Market in the last 12 Months

MX3D/Joris Laarman Lab

Doha, Qatar 10/2016Stephan Lämmle

Agenda

1. Engineering market – Today & Tomorrow Large Construction Risks Power in Transition Infrastructure Incentives / Infrastructure Projects Development Infrastructure Potential

2. “The future started yesterday” - New Trends in Engineering Cyber Risks Smart Cities, Smart Construction New Technologies: Industry 4.0, IoT, Sensors, Drones

3. Climate Change & NatCat Developments

4. Engineering Insurance Market – Today & Tomorrow Market Performance IMIA Index Market Players Messages from the market

5. Outlook

October 2016Engineering Insurance 2016 / Stephan Lämmle 2

Superlatives in Engineering Projects

Khalifa International Stadium, Aspire Zone – World Cup 2022, Qatar

Image: Hartmut Reiner/ Munich Re

Engineering Insurance 2016 / Stephan Lämmle October 2016 3

Major renovation of 40 yearold national stadium

Capacity 50,000 with plans toexpand to 68,000

Climate controlled stadium

Visited by high rankingInsurance VIP delegation in October 2016

Image: Stephan Lämmle, / Munich Re


Third Bosphorus Bridge – Northern Marmary Motorway

Image: Hartmut Reiner/ Munich ReImage: Hartmut Reiner/ Munich Re


130 km in lenght throughhilly terrain

1.4 km span bridge 329 m high pylons 59 m wide deck (widest

ever ) Heaviest bridge deck lift

ever ( 850 tons ) Combination of

suspension and cablestayed

TCV 3 bn Record construction time

36 months

Challenging Traffic Tunnels

Eurasia Tunnel Turkey TCV 2 bn

Very abrasive geology

Up to 13 bar pressure

Hyperbaric divers forrepairs

Completion on time

Single bore multi levelconfiguration

Demanding slurrytreatment

Opens Dec 2016Photos Hartmut Reiner MR Photos Hartmut Reiner MR


Challenging Traffic Tunnels


Opening Ceremony 01.06.2016

Longest train tunnel of the world

20 years construction time

Est. Value 12 bn CHF

57,1 Total Length(+ Zimmerberg 20 km+ Ceneri 15 km)

178 Cross Tunnels

10000 Lamps

Max. train speed 250 km/h

28 mio t excavation material (3 Cheops Pyramids)

Gotthard Basistunnel - AlpTransit Gotthard AG (SBB)

Photos Stephan Lämmle MR


Logistics facilities

New Doha Port TCV 4 bn

Built „ in land „ ; flodded thereafter

Terminus for Saudi Arabianpeninsula

Basin 2.8 km long 17 mtrs deep

Mixed use ( RoRo, livestock, container )

Big nature protection programmainly for mangrooves and birds

Source H.Reiner MRSource H.Reiner MR


Metro’s

Ʃ USD > 120 bn*Image: DEA PICTURE LIBRARY/ Getty Images

* Top Metro Projects past 36 months

1. Doha = USD 30 bn2. Moscow = USD 10 bn3. Mecca = USD 9 bn4. Sao Paulo = USD 8 bn5. Riyad = USD 23 bn6. Quito = USD 1.3 bn7. Lima = USD 4.4 bn8. Hanoi = USD 1.3 bn9. Fortaleza = USD 0.9 bn10. Delhi = USD 0.8 bn11. Singapore = USD 7.5 bn12. Kuala Lumpur = USD 6 bn13. Ho Chi Min City = USD 1 bn14. Los Angeles = USD 1 bn15. Panama = USD 2 bn16. Oman Rail = Suspended17. Mekkah Metro = 2.6 bn18. Mumbai Metro = 3.5 bn19. Dubai Metro = 1.6 bn20. Algiers Metro = 0.7 bn21. PRC various cities > 50 bn


Agenda





5. Outlook


Power in Transition

Key Aspects

• COP 21

• Renewable Energy

• Fracking & Shale Gas

• Decarbonization

• Aging Equipment & Tight Budgets

• Smart Grid

• HVDC

October 2016 10Engineering Insurance 2016 / Stephan Lämmle

Trends in the Electricity Market

2015 investment in the electricity sector (generation and grid) rose to a record of USD 690 billion *)

Monetary investment in Renewable Energy is stable for the last 5 years, but annual increase of capacity is up because of declining hardware prices *)

Systems are being adapted to the new energy mix with more renewables

Shift of remuneration models from payments for actually produced energy to availability based PPAs and incentives for contribution to grid stability (e.g. capacity markets, ancillary services like frequency response, MVArs, time bids and offers)

Around 95% of power short generation investments rely on vertical integration, long-term contracts (PPAs) or price regulation to manage risk *)

Regulations create incentives for availability in periods of high demand by new revenue (e.g. utilization payments in addition to availability payments) and penalty schemes (e.g. PJM and UK)

Changes of net topology (new backbones and bidirectional feed-in/out)

No important role of storage capabilities and demand side management in grids up to now*) Source: IEA International Energy Agency


Change of ParadigmsRegulated vs. Liberalized Market Environment

Criteria Old World New WorldEfficency Technically feasible Economically justifiable

Reliability Maximised Balanced vs. financial impact

Dispatch Technical / ecological criteria Merit Order

Revenue Regulated for portfolio mix Competitive driven by lowest variable costs

Maintenance efforts Revenues = f (cost) Cost = f (revenues)

PPA mechanism Production based Availability based

Consequences of non-availability Lost production during outage Penalty schemes (e.g. PJM)

Coal Base load Mid to Base load

CCPP No major role (expensive gas)

Perfect fit for cyclingbut not competitive

Renewables Investment incentives Driving fossil fuels out of business


Trends in the Electricity MarketChanging Insurance Needs

October 2016 13

IPPs having contractual supply obligation

Energy markets with penalties mechanisms(e.g. negative billing; for unavailability in gridemergency situations)

Anciliary services (frequency response, reactivepower, helpful imbalance, etc.) determining netprofit of operation

LTMAs, LTSAs, Force-Majeure relief in PPAs, etc.

Low-efficency generating capacity kept as non-spinning reserve

Costs for replacement power from spot marketsinstead of standing charges plus net profit

Outage insurance covering peak exposures

Cover for hard-to-predict short-term opportunities

Covers taylormade to residual risk for insured

Cover for residual economic value from capacitypayments instead of repair

Trend Change in Insurance Needs

Engineering Insurance 2016 / Stephan Lämmle

Change of ParadigmsPJM Capacity Market Changes


Plants must be capable of sustained, operation available throughout the entire delivery Year to provide energy and reserves whenever an emergency condition exists.

Resources that fail to perform are subject to Non-Performance Penalties triggered during all PJM Emergency Actions

“Fuel Gas Curtailment” is no longer a Force majeure, only excused if PJM lines are down (i.e.: Ice Storm)

A plant could lose its capacity payment for the year and reduce future Capacity payments due to 5 yr look ahead formula. In 2016 a 500 MW plant can lose $ 1 Mio per hour.

1. For the first time, an international climate agreement specifies the goal of holding global warming well below 2°C, aiming for 1.5°C above pre-industrial levels (note: current levels at approx. 1°C)

• To achieve this, the COP parties have agreed upon a net-zero emissions aim during the second half of the century

• “Nationally determined contributions” (NDCs) are established as the main vehicle for reducing global GHG emissions;

• Parties commit to report regularly on their emissions and “progress made in implementing and achieving” their NDCs, as well as submitting new NDCs which “represent a progression” every 5 years

2. Parties also commit to extend the current goal of mobilizing $100 billion a year by 2020 through 2025, with a new, higher goal to be set for the period after 2025.

3. Extend a mechanism to address “loss and damage” resulting from climate change, which also includes a provision about climate insurance.

UN COP 21 – Outcomes


Renewable Energy


At the end of 2015, 23.7% ofglobal electricity demand was covered by renewable energysources, with hydro power accounting for the largest share(16.6%).

Renewable Energy share of global electricity production at the end of 2015

17

Hydro power is the main RE electricity source

Source: REN21 „Renewables 2016 Global Status Report“

Fossil fueland nuclear

76%

Hydropower17%

Wind 4%

Other RE 3%

Renewable Energy

24%

October 2016Engineering Insurance 2016 / Stephan Lämmle

At the end of 2015, solar PV and wind reached newrecords of total installedcapacity: 227 GW PV and 433 GW wind.

Together, wind and PV accountfor 113 GW or 77% of newcapacity additions in 2015.

Some 3.4 GW offshore capacity was connected to thegrid during 2015, accountingfor a total offshore wind capacity of 12 GW at last year‘s end.

Cumulative global installed renewable energy capacity

18

Installed capacity 2015 – Total: 1,849 GW

Source: REN21 „Renewables 2016 Global Status Report“

* Does not include pumped storage capacity


Global annual investment in renewable energy Comparison investment by technology and region in 2015

Investment by technology (US$ bn) Investment by region (US$ bn)

95% of total renewable energy investment in 2015 was made in the solar and wind sector.

China alone accounted for 36% of last yearsinvestment in renewable energies.

Source: BNEF / UNEP „Global Trends in Renewable Energy Investments 2016“

Europe48.8

United States44.1

China102.9

India10.2

Asia & Oceania (excl. China and India)

47.6

Brazil7.1

Latin America & Canada (excl. US and Brazil)

12.8

Middle East & Africa12.5

Wind110

Solar161

Biomass + Waste

6

Geothermal2

Small Hydro4

Biofuels 3


Global annual investment in renewable energyComparison developed / developing countries


For the first time, investment in developing countries ($156 bn) topped those of the developed economies ($130 bn).

Developing countries have increased their investment in RE almost in a straight line since 2004, with a little decline in 2013.

Within the developing economy, China, India, and Brazil saw investment rise 16% to $120.2 bn in 2015 with China making the largest amount ($103 bn).

Investment in developed / developing countries 2004-2015 (US$ bn)

Developed countries Developing countries

Source: BNEF / UNEP „Global Trends in Renewable Energy Investments 2016“

3753

83108

123 114

164191

151136 142

130

9 20 2946

60 64 7587

106 98

131156

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US Power in Transition


Age structure of the current operational NA power generation assets [MW]


North American power generation fleet

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

COAL HYDRO URAN GAS/OIL CC* GAS/OIL SC/TH* WIND SUN

Capacity >40 years:HYDRO: 54%

COAL: 52% GAS / OIL SC: 38%

Source: Platts data base from McGraw Hill

Nearly half of US electricity comes from coal

138 coal plants closed since 2011 (10.2 GW)

150 more scheduled for closure in near future

329 additional plants identified for retirement

Closure due to EPA regulations to curb pollution

Growing renewable energy infrastructure (wind & solar)

Lower energy demand due to down economy


Ageing coal power plant retirements in US

Changes in US Power Landscape

Key plant equipment Aging equipment issues

High total combustible gases, insulation deterioration, FuransBushings

Obsolence, sequential tripprotective device testing / OSTDC ELOP testing

Fuel isolation, boiler explosionwater chemistry excursions, scaling, corrosion pitting, improper lay up,

Distribution transformers, storm hardening designs

Boilers

Control systems

GSU transformers

Turbines and generators

Grid

24

Aging blades & rotors, fatigue, stress corrosion cracking, loose wedges, and end windings, corona damage

Trends in the Electricity MarketAging Equipment


Expected Rise in Power Generation Capacity 2015 - 2030

Coal31%

Gas26%

Nuclear5%

Hydro18%

Wind7%

Solar4%

Others7%

Flexible Capacity

2%


2015 – 6,418 GW 2030 – 13,464 GW

Coal16%

Gas15%

Nuclear4%

Hydro12%Wind

13%

Solar28%

Others4%

Flexible Capacity

8%

Source: Bloomberg New Energy Finance

Agenda





5. Outlook


Stimulus Programs

Germany 2009: € 50 bn Stimulus Plan

USA 2009: $US 214 Stimulus Plan

Australia Stimulus Plan

October 2016 27Engineering Insurance 2016 / Stephan LämmleSource: Spiegel Online

Worldwide spend of infrastructure amounts to USD 2,8tr

The quality and extensiveness of infrastructurenetworks significantly impact economic growth and reduce income inequalities and poverty in a variety of ways

Advanced industrial economies like the United States and Western Europe are focusing on repair and replacement of their aging infrastructures

The developing world faces the more daunting task of creating new transportation, communication, water, and energy networks to foster economic growth, improve public health systems, and reduce poverty

In 2015 global spending of economical infrastructure amounts to USD 2,8tr and USD 0,6tr on social infrastructure

Global spent on infrastructure 2015

Sector Examples Spend in 2015 [USD tr]

Transport Highways, rails, tunnels bridges

Energy Energy production, power distribution

Telecom Communication networks

Water Plants for management of the water cycle

EconomicalInfrastructure

2.8

Educational buildings Universities, schools

Healthcare buildings Hospitals

Institutional buildings Social housing, prisons

Social Infrastructure 0,6

Source: CONSTRUCTION INTELLIGENCE CENTER; SFR1.4; RID


$US 2,800,000,000,000

Agenda





5. Outlook


Cumulated needs 2015-30 [USD tr] To estimate demand by region, historic spending levels are considered and projected

Simply to support projected growth, over the next 15 years there are investment needed at approx. USD 65-70tr, this does not account for the costs of addressing large maintenance and renewal backlogs and infrastructure deficiencies in emerging economies

Infrastructure investment will continue to shift to emerging economies


In the past 3,7% of global GDP has been spent on infrastructure, suggesting investment demand of ~USD 65-70tr through 2030

Global infrastructure needs 2015-30 [USD bn] Comments

100%

China

India

8%(479)

8%(217)

7%(410)

Japan

Europe

NorthAmerica

2030

5.892

35%(2.081)

11%(635)

12%(685)

9%(243)

LATAM

11%(635)

11%(666)

8%(219)

2015

2.826

26%(730)

6%(176)

12%(339)

20%(562)

12%(339)

5%(301)

RoAPAC

MEA

Source: GD VERA data; CONSTRUCTION INTELLIGENCE CENTER; SFR1; RID

Economy Demand 2015-30

CAGR2015-30

North America

7,7 3,8%

Europe 12,6 3,5%

MEA 5,0 5,6%

RoAPAC 7,2 5,3%

India 5,9 7,7%

China 20,5 6,8%

Japan 3,8 2,5%

LATAM 4,5 4,5%

Global 67,2 4,7%

Agenda





5. Outlook


Cyber

Hacking or malware attacks: Such attacks have been growing steadily in scale and frequency. In the US alone, 193.5 million customer records have been stolen in large breaches involving more than 10 million records apiece in the past two years.

Distributed denial-of-service (DDoS) attacks: Half of all major US companies sustained a denial-of-service attack to their websites last year, and more than 10% of these attacks interrupted the companies’ web-based service capabilities. The potential for significant business interruption losses from a successful DDoS attack is high.

Cyber extortion: So-called ransomware attacks have recently intensified. Those that have been disclosed have generally been small in scale. But the potential undoubtedly exists for far larger cyber extortion attempts.

Property damage and bodily injury exposures deriving from malicious cyber attacks: With the increasing interconnectivity of systems, the potential impact of an attack on the smooth functioning of plant and machinery and the safety of employees is becoming more and more severe.

System failure: An IT failure could result in business interruption, delayed services for customers, reputational loss and recovery costs.


Prognosis: Cyber insurance market


So far, 90% of cyber premiums coming from North America due to

Tight data breach regulation

Large incidents (e.g. Target)

Only recently few higher loss events

Fast development in other markets (due to changing regulation, in Asia/ Australia, planned EU Directive)

Overall strong growth expected

Accumulation risks as major issue for reinsurers and primary insurers (virus, cloud outage, etc.), capacity becoming more important

Estimated Primary Insurance Cyber Market Cyber Market Developments

0123456789

2013 2014 2020US market Rest of the world

~ 2

Source: MR market estimate based on different external sources (Marsh & McLennan, Advisen, Barbican Insurance, Allianz)

~1,2-1,4

~0,11,3-1,5

6,0-8,0

~5,0

~ 1,0-3,0

2,1-2,3

~ 2,0

~ 0,1-0,3

(2013, 2014 & 2020, in USD bn.)

High ambiguity of estimated market sizes from different sources


Future of Cyber in Insurance

Exclusion Coverage

?

Agenda





5. Outlook


Smart Construction

36Engineering Insurance 2016 / Stephan Lämmle

Smart Construction - Complex Design & Equipment


Hong Kong MTR Station Variable density TBM

Photos H.WannickMR Photos H.Reiner MR

Smart Cities


City Predesign & IoT Connections Building Technology Urban assets Energy & Ressources management (Smart Grid, RE, Water) Mobility incl. roads & transport IT & Comm. Economy, Trade

Examples: Masdar City, SA Songda City, SK Lusail City, Qatar

Applications:- Ongoing tracking of material delivery- Coordination of delivery with ongoing

assemble activities- Time-adjusted re-planning, ordering and

shipment processes- Flexible shipment routing to avoid delays

IoT for Smart Logistics and Fleet Management


Applications:- Ongoing progress tracking- Just-in-time deviation management- Just-in-time alternative suggestions- Just-in-time deviation consequence

modeling- Just-in-time effort planning (manpower, time,

machines, staff,…)

IoT for Smart Planing


Applications:- Management of Building construction

modeling- Full integration of construction planning- Full integration of construction process

and activities- Ongoing monitoring of conditions- Transfer / Migration to Building

Management System when going live

BIM Building Management System


Applications:- Overlapping aerial images of buildings are

used to generate a three-dimensional model of the scene

- Compare real and BIM planning data in 3-D- Construction Process Optimization- Site Security and Fire Prevention- Logistics for Laydown Areas- Wind Turbine Blades Inspections- Solar Panel Field Hotspot Detection

Drones

42October 2016Engineering Insurance 2016 / Stephan Lämmle

Source: Stephan Lämmle, MR

Examples

Infrastructure

Buildings

Machine parts

Medical Applications

3D Printing


MX3D/Joris Laarman Lab

Agenda





5. Outlook


Applications:- Drivers / workers fatigue recognition- Health measurements (heartrate, blood

pressure, breath rhythm,.... Stress symptoms)- Workers condition forecasting- Warnings for dangerous situations coming

closer- Recognition of wrong workers´ behaviour- Automatic identification system to monitor time

of PPE use

IoT for Smart Occupational Safety and Health (OSH)


Applications:- Augment reality with planned assembling locations

- Display machine tracks on site

- Display warnings in the glasses

- Navigation

- Display construction plan on site…

- Just-in-time translators (acoustic, visual) for different nationalities on the site – avoiding misunderstandingsamong workers

- UAV 3D Scanning and surveillance

IoT for Augmented reality construction site


Applications:

- Material has tags which allocate it to the right place

- Combined with augmented reality, the worker seeswhen the material is right or wrong at the place

- Also timely allocation (One part has to be mountedfirst before the other part can be mounted

- Location Tracking of tools

- Condition tracking of tools

- Monitoring if right tool according to material

IoT for Smart Material Management & Prefabriqued off-site construction


Applications:- Ongoing geolocation tracking of

machines- Arrival and departure tracking- Just-in-time supply chain planning- Ongoing machinery status monitoring- Predictive maintenance- Performance Warranty- Anti-collision protection

IoT for Smart Machinery Management


Agenda





5. Outlook


Natural loss events worldwide 2015 Geographical overview


Weather-related loss events worldwide 1980 –2015Number of relevant events by peril


Weather-related loss events worldwide 1980 –2015Number of severe catastrophes by peril



The average temperature of all Jan-Sept periods over the past 136 years. Source: NOAA

Climate changeEmerging issues in natural catastrophe risk

Agenda





5. Outlook


IMIA Statistics Engineering


2009 - 2014

Based on IMIA Figures 2009-11 and 2012-14

Engineering marketLarge losses overview >100m 2015Status: 16 August 2016


Energy1

Country Cause of loss Occupancy/object built (Initial) reserve (€)2

USA Explosion Oil & Gas > 200,000,000USA Fire Mining > 130,000,000Saudi Arabia Wrong filter design Power plant > 180,000,000Czech Republic Fire Oil & Gas > 500,000,000USA Fire Power plant > 125,000,000The Netherlands Fire Fertilizer > 100,000,000Australia Machinery breakdown Mining > 130,000,000Brazil Landslide Mining > 530,000,000Australia Tornado Desalination plant > 300,000,000Energy total 2,200,000,000

Engineering3


France Fire Office > 30,000,000France Derailment Railroad > 33,000,000Engineering total > 65,000,000

1 Offshore excluded 2 Reserves are initial and may not have been updated.3 For engineering, losses incurred >25m are listed too, as >100m is very rare.

Source: Bowring Marsh

Engineering marketLarge losses


Energy1


USA Explosion Oil & Gas > 200,000,000USA Fire Mining > 130,000,000Saudi Arabia Wrong filter design Power plant > 180,000,000Czech Republic Fire Oil & Gas > 500,000,000USA Fire Power plant > 125,000,000The Netherlands Fire Fertilizer > 100,000,000Australia Machinery breakdown Mining > 130,000,000Brazil Landslide Mining > 530,000,000Australia Tornado Desalination plant > 300,000,000Energy total 2,200,000,000

Engineering3


France Fire Office > 30,000,000France Derailment Railroad > 33,000,000Engineering total > 65,000,000

1 Offshore excluded 2 Reserves are initial and may not have been updated.3 For engineering, losses incurred >25m are listed too, as >100m is very rare.

Operational Power

Source: Bowring Marsh

While claims activity inevitably varies, there is an upward trend in the scale of individual power losses. For example, in 2001 the largest three claims were US$13 million, US$11 million, and US$7 million; more than 10 years on, in 2014, the scale of claims had risen dramatically to US$233 million, US$70 million, and US$55 million.Source: Marsh Report 2016

Market Capacity: 4.000 MSUDAnnual Premium: 1.500 to 2.000 MUS$Incurred losses: 2009 > 2.100 MUS$

2010 > 2.200 MUS$2011 > 2.300 MUS$2012 > 2.660 MUS$

Engineering market

October 201658

Large1 Losses – market viewEnergy/Engineering

Man-made and natural catastrophe losses1

Energy/Engineering

1 xs €20mSource: Munich Re

58%

97%

54%

71%

43%

90%

88%

94%

42%

3%

46%

29%

57%

10%

12%

6%

0% 20% 40% 60% 80% 100%

2008

2009

2010

2011

2012

2013

2014

2015

Man-made Nat Cat

0

1,000

2,000

3,000

4,000

5,000

6,000

2008 2009 2010 2011 2012 2013 2014 2015

Oil & Gas

Power Plant

Mining

Civil (Bridges,Tunnels, Roads,etc.)Buildings

Manuf.

€bn

Engineering Insurance 2016 / Stephan Lämmle

Change in Market Rate LevelVarious Analysis – Similar Trends

59

0

50

100

150

200

2008 2009 2010 2011 2012 2013Market ratesWording/DD effectSublimits

Common view?

Transparency is key:IMIA Rate Index Survey

Source. MR, H. Reiner


Agenda





5. Outlook


Quotes from the Market

61

We … must wake up and consider in a more active way

the consequences of our decisions … today on the future

results of our portfolios

if some of us are still making profit it can only be coming from the past

underwriting years

with a reduced activity and soft market we have a cocktail

for explosive situation

… although results are generally still positive the trends we see … are pretty clear and as soon as

project business written prior to will definitely expire the ULR is definitely going to get worse

Almost every insurer seems to be faced with constant

reorganisations to cut costs

Almost all complain about the market being softer than they

can ever remember. Interestingly however when I ask if they are

still making money, almost everyone says they are.

Maybe it's the calm before the storm however no one seems to anticipate a hard market in the

foreseeable future

many people are jumping into this class of business without a technical background, purely because of the premiums …, which has seen the price in

these types of projects reduce significantly.

The number of projects out there doesn’t seem to be a problem ... It’s the large big ticket items being delayed

Capacity still continues to grow in our market regardless of how soft

it is Level of talent coming into the

market is potentially diminishing transactional mentality wins over

technical mentality.


Agenda





5. Outlook


Comparison Property vs. Engineering

63

Property

Turnaround Time

Engineering

Risk Selection

Portfolio Composition

[2 years] [9 years]

USD 10.5 bn(4,7 bn Projects)

2,3%

XL Annual

Q/S & XL Short & Longterm

Frequency &Volatility

Limitations

Small lines don’tgenerate sufficient incomeNo non-prop

No quick wins / fast effect Cycle Duration

No simple “No-go Industry”Segmentation

USD 450 bn

Engineering Insurance 2016 / Stephan Lämmle October 2016

Summary

1. Growing economies (rf. IMIA country reports)

2. High potential from infrastructure investments

3. Fast pace of new trends and changes require speedyadaption of insurance operations, products and services

4. IoT leads to increasing real time transparancy of risk qualitywith individualization of risks

5. Climate change prevails and reserves for NatCat required

6. Soft engineering insurance market and long developmentpatterns render profitabilty challenging


Foundation for a bright future is all setProfessional UW, adequate terms & conditions and meeting changing clients‘ needs with innovative

solutions are key for sustainable success and profitability of the Engineering industry


Way Forwrad

N o n e o f t h e s o l u t i o n s a r e e a s y : t h e o n e s t h a t l o o k e a s y d o n ‘ t w o r k , a n d t h e o n e s t h a t w o r k a r e n o t e a s y

B U T

T h e b e s t w a y t o p r e d i c t t h e f u t u r e i sT O C R E AT E I T

Thank you kindly for your attention


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