The unprecedented number of recent natural catastrophes have not caused significant losses for the energy sector. Nonetheless, the insurance market as a whole has been heavily impacted, resulting in rate increases across many sectors.

Marsh’s latest Energy Market Monitor reveals that energy business has become much harder than before as insurers feel the pressure from reinsurers. Negotiations are taking longer, underwriters require more information, and stronger price discipline is being applied to many segments.

While conditions are more challenging, ample capacity and capital have allowed the buyer’s market to continue. Marsh’s analysis is that despite rises in some areas, pricing continues to be soft, and we expect it to remain so for the remainder of the year.