By John Cooper ,
Global Chief Client Officer, Energy & Power, Marsh Specialty
As we enter the last quarter of 2021, a common theme is the deceleration of insurance rate increases in most energy sectors, with some sub-sector exceptions, and in some cases the early signs of an approaching softening market.
Hurricane Ida had threatened to knock the market cycle off course, but while the full losses are yet to be calculated, from early reports it looks unlikely that energy and power insurers will be significantly impacted. Many insureds that suffered losses either did not purchase named windstorm coverage or the deductibles and waiting periods imposed by the market were not significantly exceeded. The cost of coverage and restrictive terms and conditions applied to this coverage means that some insureds are unable to purchase the desired level of protection for their operations.
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