Capacity Over-Supply Significantly Impacting the Energy Market
Despite forecasts of "tapering”, the pace at which energy insurance prices reduced took everyone by surprise.
The new streams of capital that are now available within the insurance market are having a significant impact; how long this capital will be available remains unclear.
The resulting loss of business to traditional reinsurance companies has increased competition on pricing. Treaty capacity is therefore getting more competitive for energy insurers and reinsurers which are being pressured by management to grow. These tough growth targets sit uneasily alongside the increase in capacity and subsequent premium reductions.
Read how this is impacting specific disciplines within the market in Marsh’s latest edition of the Energy Market Monitor.