International Risk-Conoco Phillips

Introduction

Conoco Philips is a company based on Untied States and is operating in other foreign countries. ConocoPhillips is also well-positioned in the Canadian oil sands, ranking as one of the leading SAGD producers and acreage holders. Our approximately one-million-net-acres lease holdings are estimated to hold more than 15 billion equivalent barrels of resource. The company's current reserves include one billion barrels from the oil sands, with total net production before royalties of about 78,000 barrels per day. Both are expected to increase substantially during coming decades. The company's purpose is to use its pioneering spirit to responsibly deliver energy to the world. ConocoPhillips operates according to a set of values called the spirit of performance: safety, people, integrity, responsibility, innovation and teamwork. ConocoPhillips is committed to sustainable development, and to conduct business in a way that promotes economic growth, a healthy environment and vibrant communities, now and in the future. We are also committed to being a company of choice for employees, business associates, suppliers and our local communities.

Country of Operations

For the following project, Canada and Canada have been selected where Conoco Philips operate along with several other countries

Insurance policies and regulations

At present, Canada's system of reinsurance regulation uses regulatory measures as well as guidelines based on principles that were developed by the Office of the Superintendent of Financial Institutions (hereinafter called "OSFI "). The Regulation on Reinsurance (Canadian Companies) Regulations and Reinsurance (Foreign Companies) [hereinafter referred to as "Regulations"] require federal insurance companies that provide risk specific limits with respect to their ability dispose of or risk premiums (Wafo, Pp. 36).

Under the regulations, the Canadian insurance companies that operate in an industry other than life insurance (that is to say, the P & C) can yield over 75% of their total gross premiums and this limit is 25% for premiums ceded to unregistered reinsurers. These prudential rules are intended to mitigate the risk of counterparty with whom he would call if the insurance company was unable to meet its obligations relating to claims (Simon, Pp. 143).

The regulations have been subject to any review or substantive reform since 1992.They have not followed the evolution of the sector (multi-level agreements and complex financial instruments such as securitization), and they are deficient in terms of efficiency and flexibility. These rules are easily circumvented and can essentially be described as obsolete because they no longer play their supervisory role.

However, the component "instructions" of the plan of reinsurance has experienced significant improvement since 1992. The system developed and administered by OSFI placed on the use (liability based on trust) and demonstrated in recent years, the efficiency with which it regulates the behavior and practices of financial institutions.These instructions include guidelines based on principles, and a monitoring framework based on risk (Moran, Pp. 214).

Limit of 25% of risks ceded to unregistered reinsurers

Under the regulations, a company may not transfer more than 25% of the risks insured in an unregistered reinsurer. This 25% limit was first imposed on the property and casualty industry in response to the imprudent use of unregistered reinsurers, which contributed ...