2016 Power Market Update
Softening market conditions continue to prevail across the majority, if not all, product lines in the power generation sector, and the property sector in particular. Although losses continue to occur, these have not proven disastrous for the market.
The latest Power and Utilities Market Update from Marsh’s international placement division, Bowring Marsh, analyses current global insurance market conditions for power generation risks. It provides insight into changes within the property market, available capacity, and the underwriting approach of the world’s leading insurers across six regions – Asia, Bermuda, Europe, Latin America, the Middle East and Africa, and the United Kingdom.
Key findings include:
- Capacity remains stable at around USD 4.25 billion globally.
- The combination of market forces and over-supply of capacity has ensured that the competitive environment continues.
- There is greater flexibility and quicker response times within the marketplace, as underwriters work hard to retain existing business and secure new opportunities.
- Downwards pressure on rates is not expected to change significantly, and terms and conditions remain broad.