We’ve just published our Energy Market Review for 2013, packed full of interesting material from the upstream, downstream, construction, liability and terrorism markets. It’s difficult to summarise 85 pages of analysis, data and information in a single blog post. But to whet your appetite, here are five key questions that we answer in our publication.
1. What Can be Done About Energy Industry Supply Chain Risk?
In our special feature, we show how good teamwork—both within energy companies and between them and their broker—can produce the information required to bridge the risk transfer gap that currently exists for this critical risk.
2. Will the Upstream Market Soften more Dramatically Later this Year?
Rather than any free-fall in rates, we show how the softening in the upstream market is likely to be a moderate one this year; after all, which of the current upstream insurers is going to rock the boat when everything is going so smoothly? Premium income is up, losses are down, and the existing leadership remains unthreatened by any other form of competition.
3. What’s so Great About Offshore Construction?
Well, certainly increased premium income and an improving loss record, although the loss of use issue is still something that should disturb clients.
4. Is the Downstream Market on a Cusp of Withdrawal?
Very possibly, although much will depend on 2013’s loss record. This market has had two poor years in succession and now faces a dilemma: raise rates to where they need to be, and risk being undercut, or hang on in there and find that the portfolio is pulled by senior management.
5. Is There a “Third City” in the Liability Markets?
Some insurers have a foot in both the onshore international liability market and the marine and offshore energy liability market—complicating market conditions and providing marketing strategy options for brokers.
I’ll be happy to answer your questions in the comments below.