Ståle Hansen, President & CEO, Skuld P&I Club has written an article (published in Insurance Day on July 9th, 2015) regarding the many challenges that P&I Clubs face when it comes to insuring Arctic energy risk.
Skuld was one of the pioneers of liability insurance for the offshore energy market. Mr Hansen says:
“The Skuld P&I Club set up the first liability insurance programme for the industry in the 1970s, but today the sector is almost unrecognisable from the one we first entered in its fledgling years.”
“The sensitive Arctic environment poses challenges far more complex than those with which the industry has yet had to contend. Great questions remain to be answered about how an oil spill would be cleared up and how the resources required to deal with it would be dispatched, distributed and maintained. Although everyone will work to ensure such an incident does not happen, we have to be realistic enough to accept it may not be possible to avoid entirely.”he comments
Polar problems: challenges facing insurer
1. Lack of data
Underwriters simply do not have useful data in sufficient quantity to be able to price Arctic energy risk accurately. They also lack statistics to suggest the potential cost of incidents or their likely frequency.
2. Ocean mapping
Accurate maps are a vital part of marine underwriting but the Arctic remains poorly charted. Furthermore, the threat presented by icebergs defies mapping
3. Surplus capacity
Excess capacity in today’s energy market means rates are already at a low level compared to the real risk. This makes pricing Arctic risks realistically an even greater challenge for insurers.
Source: The Skuld P&I Club
In the starting, I was outspoken with you propecia before and after has changed my life. It has become much more fun, and now I have to run. Just as it is fabulous to sit.
