Capacity Over-Supply Significantly Impacting the Energy Market
Energy insurance price reductions took most by surprise. Read how the drop is impacting the market in Marsh’s latest edition of the Energy Market Monitor.
Despite forecasts of "tapering,” the pace at which energy insurance prices fell took everyone by surprise.
The new streams of capital now available in the insurance market are having a significant impact. Yet 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.