The OIL Companion: A Guide to Oil Insurance Limited (OIL) Membership
The 2019 edition of Marsh's OIL Companion is now available. It provides an objective, in-depth analysis of OIL membership from a broker's perspective by examining both the advantages and possible disadvantages that merit consideration.
OIL had a higher than expected 2018 loss year with losses of US$917 million. This comprised of US$619 million from 2018 occurrences and US$298 million of adjustments from prior years. As a result, premiums have increased on average by 29% across Pools A&B, although this will vary by member. Theoretical withdrawal premium (TWP) has also been impacted.
Notable updates for 2019 include:
- OIL agreed, in response to a Marsh initiative, to expand acceptable shareholder provided security instruments to include surety bonds.
- OIL simplified the split policy requirements to make them less restrictive for those shareholders hoping to utilize OIL to address joint ventures’ insurance needs.
- Standard & Poor (S&P) upgraded OIL’s rating from “A-” to “A”; a major positive development.
- Reflecting shareholders’ increasingly diverse energy investments, OIL added a new sector for wind and solar renewable energy, which OIL hopes will make it more attractive to the power/utility segment.
Marsh strongly encourages any party with an interest in or engagement with OIL to register for the OTA (OIL Technical Accreditation) online training program. This can be accessed through the OIL website: www.oil.bm