Europe's dwindling power and utility operators will directly impact on the insurance industry, AXA has warned.
Far-reaching changes among the major operators and the present rate of consolidation could leave only three major power generation businesses in Europe in a few years' time, it said.
Contraction of the industry was mooted at the recent European Trade Sector Forum (Power Generation) held in Bordeaux, France, organised by AXA Corporate Solutions.
Keynote speaker Gérald Doucet, secretary general of the World Energy Council, the global organisation which addresses a broad range of energy issues, defined the current realities facing energy markets and energy users.
Issues such as future energy use and available energy resources, the impact of the development in global demographics and the related demand changes, and, inevitably, climate change implications, were discussed at the forum.
All these issues will impact on energy providers and, consequently, on their insurers, AXA insisted.
Meanwhile, AXA Corporate Solutions, a major provider of property, risk engineering and liability insurance programmes to the power generation industry, has embarked on a marketing drive to take it further into the energy marker. In particular, it is targeting utility companies.
Ian Wilson, deputy chief executive, AXA Corporate Solutions Services UK, said: “Working with AXA Corporate Solutions in France, Germany, Italy and Spain, we have acquired a valuable pool of pan-European knowledge over many years insuring some of Europe's largest power generation companies.”
