On 19 November 2019, Mamoon Alyah, CEERISK Managing Director and Principal Engineer presented at the DIFC Association about the issues encountered while investigating losses at petrochemical plants. He started by sharing latest statistics about the rapid growth of petrochemical production around the world and in the GCC region. He shared studies showing that petrochemical production is expected to account for more than a third of growth in oil demand by 2030. He explained that GCC countries, in particular, were ramping up production of petrochemicals to extract more value from their energy resources and create a downstream industry.
With the rapid growth comes the increased risk of accidents in these volatile and hazardous industries which have been known to cause injury to workers and significant financial losses. Mr. Alyah explained that Investigating these losses is typically a lengthy and complex process that demands understanding of not only the volatile chemicals present at the scene, but also—and perhaps more importantly—an understanding of the processes in place. He relied on a number of case studies to illustrate the complexity of incident investigations of petrochemical accidents.
Mr. Alyah also explained that even before a loss occurs, insurers should be aware of the gaps in risk surveys that may leave critical hazards unidentified or improperly assessed. These gaps lead to further complications in the underwriting process and creates further challenges to the investigation of these losses.
Mr. Alyah used well-known incidents from around the world to highlight how lessons can be extracted from these accidents, discussing the challenges faced by insurers and loss adjusters. He also discussed the gaps created by incomplete risk surveys and suggested ways of bridging these gaps.
