Softening & expansion of terms in energy insurance
Friday, 08 04 2017, Category: Insurance and Reinsurance, Country: World
The energy insurance and reinsurance sector has witnessed continued softening of prices and expansion of terms and conditions at recent renewals, helping protection buyers to more positive dealings with risk transfer partners, according to JLT Group’s Lloyd & Partners unit.
The offshore and onshore energy insurance market has softened rapidly, nearing the point of a cliff edge in terms of pricing. But while price reductions are deemed “relentless” by Lloyd & Partners, the benefit to the buyers of protection is tangible and likely to continue to be seen.
The broker does believe that some kind of correction is likely, however this may not be a period of cycle, it could be an ongoing shift towards a more sustainable level of lower pricing for energy insurance and reinsurance.