Gulf of Mexico insurance availability is tightening

摘要

Oil and gas companies need to be very precise this year regarding their insurance needs for Gulf of Mexico operations because insurance providers report that their own financial returns are severely squeezed after a number of hurricanes in recent years. The withdrawal of some insurance players combined with a reduced risk appetite from remaining underwriters means reduced overall underwriting capacity is available for oil and gas companies trying to renew or initiate new insurance policies this year. Coverage is available at a reasonable price for oil and gas companies whose risk managers are prepared and willing to help insurance underwriters reduce uncertainty over potential liabilities. Risk managers at oil companies need to review documentation carefully and ask questions to understand better how coverage will work in practice.