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Member, Beacon International Group, Ltd.
Onshore energy firms said that insurance risk transfer products are "overly complex" and are turning to captives instead, Strategic Risk reported. Gustavo Penas, vice president for risk and insurance at oil and gas firm Royal Dutch Shell P.L.C., said that the firm does not buy commercial insurance and prefers to self-insure via its own captive insurer. "We had the choice of only transferring a small part of our risk in return for an expensive premium or keeping the lot." Energy firms have large balance sheets and can retain the risk, he added.