Question marks remain over the energy insurance market's ability to weather another active storm season in 2006.
According to Willis, the next seven months will determine whether the market can withstand a repeat of the events of 2005.
In the broker's annual review of the energy market,
Phillip Ellis, chairman of Willis' global energy practice, said: “Last year's storm season triggered shock waves that are still moving through our industry.
“We now face not just another storm season, but an
extended season of change in how we conduct our business.”
Despite the “extraordinary losses” of the 2005 hurricane
season, Willis found the energy market had proven
“remarkably resilient”.
It also concluded that the hurricanes emphasised the
need for a “significant technical re-evaluation of the
upstream [exploration and production] market”; while
other key findings pointed to the “widening gulf” between
the onshore and offshore markets.
