Oakland, Calif.-based Eqecat Inc., a subsidiary of ABSG Consulting Inc. and an extreme-risk modeling company, has launched an Offshore Energy Model for the Gulf of Mexico region. The model is designed to help “insurers and energy producers quantify their offshore risks, which can lead to better pricing and use of capital,” said Rick Clinton, president of Eqecat.
In developing the model, Eqecat combined its extreme-risk modeling expertise with the offshore experience and the risk management expertise of ABS Consulting, which does work with energy companies and the United States government.
In the offshore energy market, most damage is primarily due to severe waves and currents generated by a storm, as well as undersea landslides. Onshore losses most often are attributed to wind. In addition, while some of the risks to offshore energy include property exposures to platforms, wellheads and pipelines, an important component of the risk in the offshore energy market is centered on continuity of production issues. The offshore energy insurance market also has some special policy conditions that have to be taken into consideration when modeling this risk, the company said.
The model covers a range of risk in the Gulf of Mexico region for oil and gas platforms, pipelines and other offshore energy industry infrastructure. It also takes into account the removal of debris caused by a specific event, business interruption and contingent business interruption, the company said.
For more information, visit www.eqecat.com.
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