Lancashire says deepwater drilling premiums doubled
Alex Maloney, chief underwriting officer at Lancashire, says the BP oil spill drove up premiums for insuring deepwater operations by 25-30% and deepwater drilling by 100% or more, the Guardian reports.
Demand for insurance has grown too, he said. "The question that board members of oil and gas companies are asking management is, 'If this were to happen, have they got enough insurance? We see some clients come to us to purchase double the amount of insurance as previously. A smaller oil and gas company [than BP] probably would have gone under."
Others discuss the oil market in the article.