U.S. Insurance Market Report 2012: Energy
Published: 03-Feb- 2012 | Comments: 0
Highlights from the energy section of the U.S. Insurance Market Report 2012 include:
- Energy companies are likely to experience flat to minor rate changes in 2012 with the exception of large capacity excess casualty programs, which continue to see the most rate volatility.
- Reinsurance markets are signaling rate increases and higher retentions, but high market capacity and lackluster demand will likely challenge direct insurers’ ability to pass on increases to their energy clients.
- Continued high M&A activity in the energy sector likely will cause demand erosion.
- Property insurance capacity remains at an all time high and is plentiful for all but a handful of large risk exposures.
- Gulf of Mexico named windstorm and deepwater control of well insurance rates remain at high levels. Demand for deepwater control of well insurance is expected to increase.
- Underwriters continue to focus on risk quality, and insureds are well advised to deliver first class submissions and presentations to differentiate their risks.