Aon launches loss estimating risk tool for oil, gas and petrochemical sectors

Aon Global Risk Consulting, the risk management consulting arm of Aon, in collaboration with research agency TNO, has launched a new modelling tool for the oil and gas sectors.

The Aon Loss Estimating Risk Tool (ALERT) for oil, gas and petrochemical clients is able to model the potential financial impact of a wide range of fire and explosion scenarios in the hydrocarbon processing industry.

“ALERT is a significant enhancement in the modelling tools available for clients within these sectors. It will support clients and insurers in calculating estimated maximum losses from property damage and in assess third party liability exposures,” Robert Robinson, managing director at Aon’s Energy Risk Engineering.

Developed in conjunction with several leading insurers, ALERT is calibrated to model a full range of known historical losses from across the industry and includes discharge and dispersion models, which are used to evaluate cloud dimensions for vapour cloud explosion events.

Paul van Ruiten, director of environment and sustainability at TNO, said: “The development of ALERT with Aon has enabled our well established consequence models to be deployed in another area of risk management to the benefit of the industry and the insurance market.”

ALERT will become a key tool for all of Aon’s Energy Risk Engineering professionals and will be managed globally from London, UK, with key support from centres of excellence in Houston, Calgary, Dubai, and Singapore.