Financial Risk Analysis for Insurance Underwriting

Earth Tech assisted XL Environmental to evaluate environmental risks for properties to be divested throughout the state of Colorado. Assets included a refinery, 43 retail gas stations, a crude gathering system and transmission pipeline, and a distribution terminal.

Earth Tech reviewed documents and prepared a key issues report identifying potential environmental risks. Earth Tech also developed independent cost estimates for remediating known contamination at sites being divested using the Remedial Action Cost Engineering and Requirements (RACER) system. Earth Tech used RACER cost estimates to conduct a probabilistic financial risk analysis using the proprietary RACER-DS system. The probabilistic analysis assisted the client to determine insurance parameters including attachment points, period of coverage, and premiums.