NEWS RELEASE

MARSH RISK CONSULTING ENGAGED TO WORK WITH P38 INC.

Toronto, Ontario, Canada - May 27, 2009

Marsh, the world’s leading insurance broker and risk advisor, and the firm’s risk consulting unit, Marsh Risk Consulting (MRC), work with businesses, organizations, and public entity clients throughout Canada and in all parts of the world to help them identify, understand, quantify, manage, and mitigate their potential exposures.

As part of this work, Marsh and MRC help clients to identify and implement best practices in a wide variety of areas related to enterprise risk management, workplace safety, property risk control, business continuity, preparedness, and supply chain risk management, among other risk management related activities.

In early 2008, Marsh began discussions with certain organizations involved in the Canadian propane industry. In the fall of 2008, the Marsh Risk Consulting (MRC) unit of Marsh Canada was engaged by P38 Inc., a newly formed organization comprised of key stakeholders in the Canadian propane industry, to help create an improved risk management framework model for the propane industry. This engagement included the following:

• A P38 Inc. propriety industry Code of Practice model to define operating principles and guidelines relating to safety, security, and risk management practices, adherence to which would serve as a key condition for participation in or certification by P38.
• A Risk Register for use by P38 Inc. in its member enterprise practices and dealings. Propane risks are assessed through the lifecycle of the product supply chain, including transportation, bulk facilities, equipment utilized, and in the disposition to end customers in all segments of the products use. Through a comprehensive series of due diligence workshops facilitated by MRC, a register of hazards, controls, and performance objectives is being developed. Workshop participants include the expertise of the P38 members, a propane producer, a propane transporter, a propane distributor, an equipment supplier, an ASME pressure vessel manufacturer, and a global insurer.
• A performance-based gap audit process to enable P38 Inc. to rigorously measure and benchmark risk management performance by assessing controls in place against expected performance objectives.

  The goal of the MRC work on behalf of P38 is to help develop tools and strategies that can assist member companies of P38 to operate efficiently and in a manner that significantly differentiates and enhances safety for the general public and in the workplace. The P38 member companies believe MRC and Marsh are uniquely qualified to help them assess and quantify the risks associated with propane.

  As an outcome, it is expected that this project will help P38 Inc. member companies with their insurance programs. Marsh clients, such as the P38 member companies, operating as “best in class” with respect to their risk management practices, may be able to obtain lower costs and better coverage terms and conditions resulting from having a more desirable risk profile than other firms in their industry who are less rigorous.

  P38 presents facts regarding propane safety awareness to the public via the website www.propanefacts.ca.

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  For more information, contact:
  Peter Kirkwood
  Marsh Canada Limited
  Phone: 1-800-663-0787
  www.marsh.ca

  P38 Inc. stakeholders include BUDGET Propane (Valleyfield, QC), EDPRO Energy (London, ON), SLEEGERS Tanks (London, ON), and SPARLING’S Propane (Blyth, ON). For more information visit www.propanefacts.ca