Many of Lockton’s Energy clients experienced significant losses from hurricanes Katrina and Rita in 2006. Massive property damage reduced our clients’ ability to produce oil and gas which cut revenues dramatically. One client sustained losses in excess of $120 million, creating a serious cash flow problem.

The Lockton team was able to achieve an early “global settlement” which helped the company avoid a potentially serious financial crisis. The work of internal claims specialists as well as the ability of Lockton’s senior Account Executives to elevate negotiations to key underwriters was very important to reaching a quick and successful settlement.

During the course of performing a quarterly claim review with our insured, our Claims Coordinator determined that additional investigation was required on ten of the claims. The insurance carrier had provided insufficient information to properly assess their status. Due to the significant reserves associated with these files Lockton took the lead in conducting further investigation.

Our Claims Coordinator discussed each of the claims with the individual adjusters to determine the current status, develop more aggressive action plans, and adjust the reserves. As a result of our intervention, the overall reserves on ten files were reduced by $227,271.12. On the files that were impacted this was a 42 percent reduction in the total incurred costs.

Offshore Construction: we placed an offshore construction cover that provided certainty of coverage, quality security, and consistency of rating, conditions and deductibles for one of the world's largest oil companies. This was achieved in the hard market and after one of the mega-brokers had worked on the same project for a year, without success.

We have placed the property programme for a large US power generator, with major Gulf Coast windstorm exposures and losses. Amongst our achievements are the development of new capacity and an innovative approach to the interface between commercial market cover and the client's involvement with an industry mutual, we brought the buyer back to the commercial market, achieving premium savings and new risk transfer capacity.

Gaza Power is a generating plant located in Palestine and partially owned by the US. It was temporarily put out of action by Israeli forces (but was able to quickly regain production). It is a modern combined cycle gas and steam turbine plant, currently running on fuel oil but planning to convert to natural gas as the off-shore gas fields in Gaza are developed. Lockton was appointed as a result of the support and encouragement we gave their management team in difficult times, and the competitive premiums secured from what was quite a difficult market.

Lockton worked hand-in-hand with a long time client in energy manufacturing to help the company win a large contract.  The energy equipment manufacturer needed to improve its safety and loss control, and asked Lockton’s risk control team to evaluate their existing programs.  Lockton made a series of recommendations, and launched a series of actions to advance the client's safety goals.  Lockton even made a safety presentation on behalf of the client, which helped them win a bid for them, according to the company President/CEO.  After logging more than 100 hours consulting and improving safety programs, Lockton guided the client to a reduction in safety incidents and a contract worth $7.6 million.

 A firm had switched to a large deductible worker’s compensation program, and needed to post millions in collateral.  However, the company was concerned that the collateral requirement was too high.  It wanted options to reduce the collateral and the fixed costs on the program.  So Lockton conducted a thorough credit review with the carrier, audited and reconstructed its loss data, and then researched claims development patterns to revise the loss projections.  After considerable discussion and intense review with the carrier, the client secured a 50 percent reduction in collateral, freeing up $10 million on the company’s line of credit for other business uses.And in total, the Lockton team helped the firm save $350,000 in cash on its worker’s compensation program.

The Lockton international team spotted a serious gap in coverage for a company that specializes in liquefied petroleum gas (LPG) purchasing and distribution. Before becoming a Lockton client, the company did not have a standard foreign liability program to fulfill its needs internationally. Lockton created a program to cover its needs without raising the premium. The new program structure generated savings and successfully paid out more than $1 million for a claim that would not have been previously covered.

A large electric utility company needed a new approach to risk management. Lockton provided a full analysis and devised a more effective way to manage their program. Lockton focused on fostering carrier relationships and restructuring the policy to better cover the tough risks such as landfill gas. Overall, Lockton saved the client more than one million dollars and kept the client aware of all steps throughout the process.