Aon said the results of a survey conducted at its 9th Latin American Energy Insurance Conference in Cancun, Mexico, indicated that a majority of participants expect insurance rates to soften for non-U.S. programs later in 2006.
According to the survey, taken among nearly 240 audience members at the conference, “61 percent of voters believe that energy companies from Latin America should expect their programs to benefit from increased appetite for international business later in 2006.”
Brokers, energy insurance buyers, and insurers from Latin America and other regions, “congregated in Cancun to exchange ideas and discuss market implications of the 2005 hurricane season,” said the bulletin.
Magne Seljeflot, chairman, Aon Natural Resources Global Practice Group commented: “We’ve been doing this for nine years, and every year it gets better. Risk management is more than policy buying. It’s our job as risk consultants to educate clients. This year, after the 2005 hurricanes, the intricacies of energy risk are greater than ever. We’re working with clients to help them better understand the risks they face, and to mitigate that risk through multiple methods.”
Other survey findings include:
— Despite controversy over contingent business interruption that has
come to light since the 2005 hurricane season, only 42 percent of
insurers believe that contingent business interruption insurance for
energy risks can never be underwritten successfully in the long term,
and should be excluded from the cover provided;
— Sixty-seven percent of voters indicated they believe that the energy
insurance market will respond to today’s underwriting challenges and
price its cover for U.S. windstorm effectively in the future; and
— Only 40 percent of voters believe that all insurers and reinsurers
will be able to rely on accurate catastrophe models — whatever of the
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