Gulf of Mexico prices to rise

Jan-Oliver Thofern, chief executive of Aon Benfield Reinsurance Brokers in Hamburg says insurers will hike rates for renewals in the Gulf of Mexico, Dow Jones reports.

"I expect rates for offshore energy (insurance) policies in the Gulf of Mexico to virtually double," he said. Policies underwritten by primary insurers for industrial clients will be worst hit, Thofern said,

The impact on reinsurance rates in the Gulf of Mexico depends on broader developments, such as the U.S. hurricane season. This year's hurricane season is expected to be strong.

Global rates for aviation policies can be expected to "remain stable to go up slightly," Thofern said. He said he hoped to see new credit rating firms and better regulation and the control of ratings agencies.