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Self-Insurance Feasibility Study for a Libyan Energy Firm

A Libyan energy firm sought to explore the feasibility of transitioning from traditional insurance policies to a self-insurance model for some of its assets. To address this, the firm engaged Qabas to conduct an in-depth cost-benefit analysis, considering the unique risks and benefits of such an innovative approach in the Libyan context.

Deep Financial Analysis

We began by performing a detailed financial analysis to understand the implications of self-insurance. This included:

  1. Risk Assessment: Evaluating the firm’s exposure to various risks and determining the likelihood and potential impact of these risks on their operations.
  2. Cost-Benefit Analysis: Comparing the costs associated with traditional insurance premiums against the potential savings from self-insurance. This analysis also considered the firm’s financial strength and ability to allocate sufficient reserves for potential claims.
  3. Financial Reserves Evaluation: Assessing the firm’s capacity to establish and maintain adequate financial reserves to cover potential losses without relying on external insurance providers.

Regulatory and Compliance Review

Ensuring compliance with local and international regulatory frameworks was critical. Our approach included:

  1. Regulatory Analysis: Reviewing relevant Libyan regulations and international standards to ensure the firm’s self-insurance model would be compliant.
  2. Legal Consultation: Engaging with legal experts to understand the implications of self-insurance and to navigate any legal challenges that might arise.
  3. Framework Development: Developing a compliant framework for self-insurance that aligns with both regulatory requirements and the firm’s operational objectives.

Strategic Risk Management Practices

To support the transition, we also examined strategic risk management practices, which involved:

  1. Risk Mitigation Strategies: Identifying and recommending strategies to mitigate potential losses, including improved safety protocols, preventive maintenance, and robust emergency response plans.
  2. Actuarial Analysis: Applying actuarial techniques to model potential loss scenarios and to determine the appropriate level of financial reserves needed to self-insure effectively.
  3. Performance Monitoring: Establishing key performance indicators (KPIs) and monitoring systems to continuously assess the effectiveness of the self-insurance model and to make adjustments as needed.


Our feasibility study provided the Libyan energy firm with detailed insights into the viability of adopting a self-insurance model. Key outcomes included:

  1. Informed Decision-Making: Our deep analysis enabled the firm to make informed decisions about transitioning to self-insurance, considering financial, regulatory, and risk management perspectives.
  2. Financial Preparedness: Identified the necessary financial reserves and management strategies required for successful implementation, ensuring the firm could adequately cover potential risks.
  3. Strategic Guidance: Equipped the firm with a strategic plan to mitigate risks, comply with regulations, and monitor performance, thereby enhancing their overall risk management framework.

By conducting this in-depth feasibility study, we effectively supported our client in evaluating a potentially more cost-effective risk financing strategy, tailored to the complex Libyan market. The detailed guidance provided ensured that the firm was well-prepared to implement and manage a self-insurance model, contributing to their long-term financial stability and resilience.

Viability Analysis of Establishing an Airline in Southern Libya
Having implemented the Siemens SIMATIC S7 controller in their production line, the Libyan Iron and Steel Company (LISCO) sought to maximise the potential of this sophisticated technology. To achieve this, LISCO engaged Qabas to enhance its engineering team’s technical skills through an extensive training programme covering Siemens SIMATIC S7, including programming and TIA (Totally Integrated Automation). Training Specifications Siemens S7 Training: Engineers required a deep understanding of Siemens S7 PLCs, encompassing hardware configuration, system diagnostics, and basic programming. Advanced Programming: The programme aimed to enhance engineers’ skills in advanced programming for Siemens S7 PLCs, focusing on ladder logic, structured text, and function block diagrams. TIA Training: The TIA Portal training covered integrated engineering, system configuration, and efficient project management within the Siemens automation environment. Implementation Strategy Needs Analysis: We conducted a detailed assessment to identify the specific training needs of LISCO’s engineers, aligning the curriculum with the company’s operational goals and technological requirements. Customised Modules: We developed specialised training modules tailored to Siemens S7, advanced programming, and TIA, addressing the unique requirements of LISCO’s engineering team. Practical Workshops: We delivered hands-on workshops to provide practical experience with Siemens S7 PLCs and the TIA Portal, reinforcing theoretical knowledge through real-world application. Ongoing Support: We established continuous learning support mechanisms, including access to online resources, post-training evaluations, and follow-up sessions to ensure skill retention and knowledge enhancement. Stakeholder Communication: We maintained consistent communication with LISCO’s management and engineering teams to ensure alignment with training objectives and gather continuous feedback for course refinement. Results This initiative significantly enhanced the technical capabilities of LISCO’s engineering team. Engineers developed a robust understanding of Siemens S7 PLCs, advanced programming techniques, and the TIA Portal, leading to improved system diagnostics, efficient project management, and greater automation efficiency. Ultimately, it boosted the team’s confidence and proficiency in handling complex automation tasks and positioned LISCO as a leader in industrial automation.
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