IUMI: Offshore Energy Insurance Market “Sinking”
At annual IUMI (International Union of Marine Insurance) conference in Tokyo, James McDonald, chairman of IUMI’s Offshore Energy Committee warned that the sector was “sinking”. His warning was based on declining total premium income set alongside upstream energy large losses for 2015-16 of USD 4.8 billion. McDonald explained: “In recent years it would appear that claims have exceeded the global premium base and the last two underwriting years have seen significant losses. The impact of Hurricanes Irma and Harvey are unlikely to deliver the same magnitude of loss that resulted from Katrina and Rita in 2005 or Ike in 2008, but whilst Harvey and Irma appear not to have had much impact on the offshore sector the year’s hurricane season still has some distance to run”.
Tough Times Loom for Offshore Energy Insurance -IUMI
Speaking at this year’s IUMI conference in Berlin, Simon Williams, Chairman of IUMI’s offshore energy committee reported continuous growth in the sector with 2015 capacity reaching around $7 billion, though he cautioned that $5.5 billion was more realistic. Williams explained that the first six months of 2015 had already recorded the largest number of losses since 2011 and that this could well impact significantly on 2014 profits. “Our sector has already racked-up more than $2 billion in a series of losses, including incidents in Mexico, the Falklands and Brazil. 2014 underwriting year still has a way to go,” he said. The rapid drop in oil prices was fueling market pessimism…
Energy Industry Needs Insurance Against Cyber Attacks
Energy companies have no insurance against major cyber attacks, reinsurance broker Willis said on Tuesday, likening the threat to a "time bomb" that could cost the industry billions of dollars. Willis highlighted the industry's vulnerability to cyber threats in its annual review of the energy sector's insurance market, which called on insurers to find a way to provide cover. "A major energy catastrophe - on the same scale as ... Exxon Valdez or Deepwater Horizon - could be caused by a cyber attack, and, crucially, that cover for such a loss is generally not currently provided by the energy insurance market," the insurance broker said.
Marine Warranty Surveyors Association Launched
On Thursday 25 April 2013, at Lloyd’s of London, a new professional body, the International Association of Marine Warranty Surveyors (IAMWS), was formally launched. Approximately 120 representatives from the energy insurance market together with brokers and oil company representatives attended a seminar to announce the aims and objectives of the new association. This new body will assess and provide accreditation to practicing marine warranty surveyors from across the world to ensure they operate to an acknowledged minimum professional standard and code of ethics. The benefits of a common standard have increasingly been discussed by the offshore oil and gas industry, and IAMWS has been created to promote a consistent and robust level of service.
Braemar Adjusting Opens New Dubai Office
Braemar Adjusting has underlined its commitment to the Middle Eastern onshore and offshore Energy Insurance Market by opening a dedicated loss adjusting operation, based in Dubai. With effect from 1 April 2013, Chris Eades, Regional Director for the Middle East, and Senior Adjuster Sam Foster, will start working from the Dubai World Trade Center Building offices of sister company Braemar Salvage Association, before moving into their own Braemar Adjusting offices later in the year. Welcoming the development, Grant Smith, Group Managing Director of Braemar Adjusting, said: “Within Braemar we place a huge emphasis on client service and the expertise of our personnel.
