This document discusses the advantages of an Owner Controlled Insurance Program (OCIP) compared to traditional insurance models for large infrastructure projects. An OCIP allows a project owner to consolidate multiple insurance policies into a single program, providing consistent coverage for all phases of a project at lower costs than individual policies. It can cover the owner, contractors, subcontractors, engineers and others working on the project. Adopting an OCIP model provides the owner with more control over insurance and potentially significant cost savings compared to contractors separately obtaining their own policies. The growing infrastructure market in Saudi Arabia presents both opportunities and challenges that require new solutions like the OCIP approach.

1. Sultan Al-Khomashi
September 2014
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2. September 2014
Sultan Al-Khomashi – GM P&C
Owner Controlled Insurance Program (OCIP) A missing advantage for project owners & developers
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3. 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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4. The Future of
Modern economy
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5. Saudi Arabia
750bn SAR
Infrastructure projects by 2020
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#1
Construction market in middle east
11th
Globally in infrastructure potential investment

6. That brings new
Challenges
to the market
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7. 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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8. Traditional insurance
Not enough
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9. 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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10. it’s time to think about …
OCIP
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11. 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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12. OCIP covers all project phases
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Testing/handover phase
Construction phase
Operational phases
The design phase risk

13. 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

14. 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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15. 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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16. Peace of mind
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You will have

17. Additional benefits
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Risk & Loss Control
Claim Management
Better financial arrangements

18. Traditional CAR/EAR insurance Vs. OCIP
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Trad. Insurance
Purchased by Contractors Limited liability No workers’ compensations Narrow Liability Limit No completed operations coverage Gaps on coverage
OCIP
Purchased by Owner Wide liability coverage Can include workers compensation Can include general liability with higher limits Can include completed operational coverage

19. OCIP vs. Traditional insurance
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Potential saving in OCIP

20. New challenges needs..
New perspective
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New solutions

21. Final Slide
Tawuniya logo, contact information
Q&A
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Thank
you