Insured losses, including Japan, halt energy price slide: Willis
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SAN ANTONIO—The earthquake and tsunami in Japan as well as claims related to two major losses in Canada and the North Sea have halted the slide in energy insurance prices, Willis Group Holdings P.L.C. said in a report released Thursday.
The losses, though, may not be enough to dampen competition among energy insurers in a “relatively profitable sector,” according to the annual “Willis Energy Market Review,” released at a conference sponsored by the broker in San Antonio.
Capacity in the energy market is at an all-time high of $4.3 billion for upstream risks and a 10-year high of $3.7 billion for downstream risks, the report said.
Claims from the disaster in Japan, losses amounting to more than $1 billion from a fire at a Canadian oil sands operation this year and the loss of Maersk Oil’s Gryphon oil and gas installation in the North Sea estimated at $800 million have stopped the decline in energy insurance prices, the report noted.
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