By John Cooper ,
Global Chief Client Officer, Energy & Power, Marsh Specialty
Offshore energy underwriters writing named windstorm cover in the Gulf of Mexico experienced a benign year in terms of losses — the 23rd year without significant loss — following the substantial losses the market suffered in 2004, 2005 and 2008 that changed the landscape of the market.
Onshore energy underwriters also appear to have suffered relatively light losses, with a lot of the flood damage caused to energy facilities being self-insured, in captives or in mutuals.
The chart below plots the latest 2021 Atlantic Basin tropical storm activity against forecasts from Tropical Storm Risk (TSR), the National Oceanic and Atmospheric Administration (NOAA), and Colorado State University (CSU), as well as the 71 year (as far back a modern records go), and the 10-year averages.
Source: Colorado State University