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Member, Beacon International Group, Ltd.
Energy insurers should capitalize on what Willis Group Holdings P.L.C. is calling the most competitive energy insurance market in 15 years, the company said in a statement Thursday.
Insurers offering such coverages “should increase innovation and offer buyers a wider range of new products and services,” urged Willis in its statement.
“In this underwriting climate, we believe that the time has come for more innovation, for new products and services to be developed to attract the interest of the buyer,” Alistair Rivers, Head of Willis' natural resources industry, said in the statement.
Oil markets' plunging prices have wrought changes upon the sector, said Willis.
“A combination of the recent collapse in oil prices, record capacity levels, relatively benign loss records and reduced risk management budgets have all contributed to some of the most competitive energy insurance underwriting conditions for 15 years,” said Willis' Natural Resources Market Review (previously the Willis Energy Market Review), published Thursday.
Concrete recommendations included the repackaging of onshore terrorism cover into property programs and the deletion of cyber exclusions, Willis said in its statement.
Increasing aggregate limits and retentions for natural catastrophe risks was also recommended.
The broker also sees value in increased sub-limits for contingent business interruption or supply chain risks and the creation of a “seamless” product for onshore projects which would cover the handover from construction to operation.
Willis Group Holdings P.L.C. on Tuesday announced it has acquired Guadalajara, Mexico-based brokerage Carsa Consultores Agente de Seguros y de Fianzas S.A. de C.V.