Insurance, reinsurance, ILS key to covering energy sector for extreme weather risks

Posted On: Oct. 22, 2015 12:00 AM CST

The World Energy Council has said in a report that insurance, reinsurance and insurance-linked securities can play a key role in offsetting the energy sector's growing exposure to extreme weather events, reports Artemis.bm.

"The frequency, severity and exposure of energy systems to extreme weather events are increasing," said the WEC. "With greater transparency, insurers and banks could take advantage of extreme weather risks to create unique financial vehicles that help fill project financing gaps.”