This document discusses the impact of large oil spill losses on the insurance industry. It notes that catastrophic losses from events like hurricanes have increased due to factors like climate change and development. The Deepwater Horizon spill is discussed as a "catastrophe coverage wake-up call" that will require insurers to reassess risk assessment, claims handling, policy coverage and exclusions, and potential changes to the industry in response. Questions are posed about how insurers and the industry may adapt to the potential for larger oil spill losses in the future.

1. The Alphabet of Insurance Coverage in Oil Spill Losses Daniel W. Gerber Kurt Falk Linda D. Kornfeld James R. Pierce, Jr.

4. Insured catastrophe losses 1970–2009 USD bn, at 2009 prices Source: Swiss Re, sigma No 1/2010, Figure 3 2005: Hurricanes Katrina, Rita, Wilma 2008: Hurricanes Ike, Gustav 2001: Attack on WTC 1999: Winter storm Lothar 1992: Hurricane Andrew 1994: Northridge EQ 2004: Hurricanes Ivan, Charley, Frances  increased insurance penetration  more values  more values in high - risk areas  higher vulnerability  climate change (storm,flood) Ocean Drive, FL, 2000 Ocean Drive, FL, 1926

12. Where will the future take us?

13. Questions?

14. The Alphabet of Insurance Coverage in Oil Spill Losses Daniel W. Gerber, Kurt Falk, Linda D. Kornfeld, James R. Pierce, Jr.