Energy Review 02-2018
28 February 2018
The first weeks of the year have passed by relatively smoothly. The price of oil has edged upwards but seems to have stabilised with Brent just above the US$60 mark. We read in the news that oilfield services companies are ‘On An Upswing’ and repairs have been completed on the Forties pipeline which had to be shut down just before Christmas, leading to a sharp increase in the price of oil before dropping back slightly.
There has been even more dynamism in the energy industry and we read headlines such as: “Oil, Gas Majors to Boost Renewable Spend” “Big Global Oil Projects Are Starting to Get Off the Ground,” “Exxon’s US$50-billion bonanza returns spending to pre-rout level.” Added to this are announcements that Shell has made one of its largest oil discoveries in Gulf of Mexico, and Total has also made the largest company discovery in the Gulf to date.
Britain has been well in the picture with Premier: its Tolmount project sanction is on track for 2018, it has lifted the first cargo of Catcher oil and then it bagged an Indonesian offshore licence. Norway’s Sverdrup oilfield could start in October 2019. This is welcome news: Johan Sverdrup is one of the five largest oil fields on the Norwegian continental shelf. With expected resources of between two and three billion barrels of oil equivalents, it will also be one of the most important industrial projects in Norway in the next 50 years. Not only for Statoil but for all of the players in the North Sea there is even more good news with the announcement that new subsea technology could generate an additional US$4 billion from the UK Continental Shelf.
Other positive developments around the world include news that India opened its first open-acreage bid round, Mongolia is to break ground on its first refinery this year, and Jordan has approved a deal with Iraq on an oil and gas pipeline.
As we have mentioned previously, Venezuela is facing its own challenges and causing its own problems, but the country feels that others are kicking it while it is down. The US is said to be considering a ban on oil imports from Venezuela but with refiners from Texas to Mississippi who invested billions in equipment to process cheap, heavy oil from countries like Venezuela, Ecuador and Colombia, it could lead to considerable losses to US corporations. Just as Venezuela became dependent on demand from the US Gulf Coast, home to one of the world’s largest clusters of refineries, American fuel makers grew to rely more on Venezuelan crude. It is now the second-largest supplier of crude to Gulf Coast plants, after Mexico. Could the States be shooting itself in the foot?
In spite of the predictions made by many experts, the situation in the Middle East has not calmed down significantly. ISIS is down but not out and nearly all of its enemies are now fighting each other. Russia and Turkey are still very much involved in local conflicts but a recent US military intervention could be a sign that the West may soon assert itself more consistently. There have been photographs of newly-built military installations on the artificial islands China has set up in the South China Sea, and the countries who are much closer by who have UN-backed claims to that part of the Sea are struggling to have their voice heard. Given that the area is probably the world’s most important trade route, the question is: what does China plan to do if/when it assumes total and undisputed control of the area?
In our Insurance News section we include articles on technology, challenges for cyber growth, moves by the London Market to simplify claims handling and more.
There have been quite a few moves in the energy insurance market with Canopius, XL Catlin and Berkeley Research Group (BRG) all getting a mention.
We have plenty of news for our readers and hope this will all prove interesting and informative for everyone.
Energy Casualties
Fire breaks out aboard Petrobras FPSO in Santos Basin
A fire broke out aboard a Petrobras-operated FPSO early on the 16th January, the Brazilian oil company has announced.
In a statement Petrobras said the fire had been identified aboard the Cidade de Maricá in the Lula Alto Area of the Lula field, in the pre-salt area of the Santos basin.
The fire, spotted at 4:38 a.m. local time, was contained at 4:55 a.m. using the firefighting equipment aboard the FPSO. The production of the FPSO was halted and was to be resumed as soon as security tests were performed, Petrobras said.
The company has informed the relevant authorities, and a commission has been set up to investigate the causes of the incident. There was no harm to people or the environment, the company added.
The Lula Alto area, in the Lula field, is owned by the BM-S-11 Consortium, operated by Petrobras (65%), in partnership with Shell Brasil Petróleo Ltda (25%) and Petrogal Brasil S.A. (10%).
The vessel is located at approximately 270 kilometres from the coast, at a water depth of 2,120 metres. Cidade de Maricá has a daily production capacity of up to 150,000 barrels of oil and six million cubic metres of gas which is the seventh major definitive production system in the pre-salt layer of the Santos Basin.
Pipeline blockage closes down Erskine production
Chevron-operated Erskine field in the UK North Sea halted production due to an issue with a pipeline.
The Erskine Field lies approximately 150 miles (241 kilometres) east of Aberdeen, in water depths of about 296 feet (90 metres). It is operated by Chevron (50%) with Chrysaor (32%) and Serica Energy (18%) holding non-operated interests in the field.
Serica Energy announced on the 22nd January that, during routine pipeline cleaning operations of the Lomond to Everest condensate export pipeline, a blockage occurred in the pipeline.
The cause was investigated and, during this period, the Erskine field was unable to produce, Serica added in a brief statement.
Discovered in 1981 in Block 23/26, Erskine is a gas condensate field. It was the first high-pressure, high-temperature field to be developed in the UK Continental Shelf. First production was achieved in November 1997.
The field includes a normally unattended installation and is remotely controlled from Chrysaor’s Lomond platform. An 18.6 mile (30-kilometre) pipeline links the two facilities.
Processing takes place in a dedicated module on the Lomond platform. Gas and condensate are exported separately to Chrysaor’s North Everest platforms before gas is finally exported via the Central Area Transmission System and condensate is exported through the Forties Pipeline System.
Fire on tanker in the Arabian Sea
A major fire broke out on crude oil tanker MT Genessa (IMO 9183647) off the coast of Kandla in Gujarat, Arabian Sea, on the 17th January.
The Indian Coast Guard (ICG) rescued 26 crew members on board MT Genessa and efforts were underway to put out the fire. Tugs and other resources were already deployed in firefighting, and the tanker was fenced by booms.
No oil spill has been reported. It was reported to have 30,000 tonnes of diesel on board. Two members sustained burn injuries and were undergoing treatment, according to local reports.
2000-built, India-flagged, 27,645-gt MT Genessa is owned and managed by Seven Islands Shipping Ltd. of Mumbai, India. It is entered with American Club on behalf of Seven Islands Shipping Ltd.
Tanker runs aground in the Aegean Sea
Oil products tanker Eko 2 (IMO 9393955) ran aground off the coast of Psara, an islet north-west of Chios in the eastern Aegean Sea, on the 16th January, while carrying an unknown quantity of oil products.
The tanker, with a crew of 17, was en route from Lesvos to Chios when it grounded. Coastguard authorities were monitoring the situation in case of a leak and a tug was on its way to help re-float the tanker. There have been no reports of injuries.
2009-built, Greece-flagged, 2,978-gt Eko 2 is owned by Eko-Hera Shipping Company, care of manager Kinetic Shipping Company, Athens.
It is entered with North of England P&I Group on behalf of Eko-Hera Shipping Company.
ONGC confirms six dead, one missing after helicopter crash
Following an extensive search operation, jointly conducted by ONGC (Oil & Natural Gas Corporation), the Coast Guard and the Indian Navy, six bodies including one of the two pilots of ill-fated Pawan Hans Chopper have so far been recovered. At the time of writing the search was ongoing for one more person who is still missing.
During the Search and Rescue (SAR) Operations on the 14th January, the VDR of the chopper was recovered. Search operation is on for the remaining debris of the production chopper VT – PWA.
Sanchi sinks a week after East China Sea collision
Iranian suezmax Sanchi exploded at around noon and sank by 17:00 local time on Sunday 14th January, eight days after it had been involved in a collision with bulk carrier CF Crystal.
Chinese media said that large amounts of oil were burning in the surrounding waters. Although most of the oil on the vessel was condensate, there was also some bunker fuel.
Smoke was billowing as high as 1,000 metres. China’s State Oceanic Administration said that it was monitoring the spread and drift of the overflowing oil.
A Chinese salvage team managed to recover two additional bodies from the tanker, but 29 are still missing, presumed dead. Iranian President Hassan Rouhani sent messages of condolence to the families of the crew, consisting of 30 Iranians and two Bangladeshis, and called for an investigation into the accident. The Sanchi’s voyage data recorder, or “black box”, was also recovered from the bridge of the tanker.
Sanchi was carrying some one million barrels of condensate and a smaller amount of bunker crude when it collided 160 nautical miles off the east coast of China with grain carrier CF Crystal – the latter being towed into port near Zhoushan for inspection. Sanchi subsequently drifted at about 1.4 mph in a south-westerly direction.
Chinese state TV CCTV said the detected slick was one to four nautical miles wide and had grown several times in size in one day, stirring further worries about damage to a marine ecosystem rich in fish and bird life. The slick was discovered east of where the ship sank.
A clean-up effort on the sea’s surface has begun and rescue teams have called a halt to the large-scale search for survivors, reducing it to “normal” operations, CCTV said.
Strong winds had pushed it away from the Chinese coast, where the incident happened, and into Japan’s exclusive economic zone (EEZ) about 315 kilometres (195 miles) west of Sokkozaki on the island of Amami Oshima, one of the northern islands in the Ryukyu island chain which includes Okinawa.
Whether escaped condensate causes an oil spill or not depends on whether it has vaporised, burnt off, or escaped in liquid form. When forming a spill, its toxicity and uncontrollability makes it particularly dangerous. However, it dissipates and breaks down more easily than heavier oils.
Korean insurer Hanwa and China’s PICC have been named by Insurance Insider as lead insurers for various parts of the insurance associated with the accident. Skuld has confirmed its position as lead hull insurer for Sanchi and P&I Club insurer for CF Crystal. Steamship Mutual is the P&I insurer for Sanchi.
CF Crystal, owned by Changong Group HK Ltd. care of manager Shanghai CP International Ship Management of Shanghai, China, is entered with Skuld on behalf of Changfeng Shipping Holdings Limited.
On the 25th January, the maritime authorities of China, Panama, Iran and Hong Kong signed an agreement to investigate jointly the collision in the East China Sea which caused the worst oil ship disaster in decades, according to China’s Ministry of Transport.
Investigation work will be organised by a joint team composed of representatives of all four signatories to the agreement, a brief statement from the ministry said.
IMB publishes its 2017 annual report – lowest number of piracy incidents since 1995
The IMB (International Maritime Bureau) has published its report on piracy and armed robbery for the 12-month period from the 1st January 2017 to the 31st December 2017.
According to the report, a total of 180 incidents were reported, which represents the lowest annual figure since 1995. However, crew safety continues to be a cause for concern.
In total, during 2017, 136 ships were boarded, six hijacked, 16 fired upon and there were 22 attempted attacks.
In relation to crew, the IMB reports that 80 crew members were taken hostage and 49 kidnapped.
The main bulk of the 180 reported incidents for 2017 occurred in Indonesia, Nigeria, Philippines, Venezuela and Bangladesh.
Southeast Asia/Indonesia/ Philippines
Indonesia recorded 43 incidents in 2017, down from 49 in 2016. The continuing decrease in the number of reported incidents is due to the Indonesian Marine Police patrols in the country’s designated safe anchorages. On the contrary, in the Philippines, the number of reported attacks has more than doubled, from ten in 2016 to 22 in 2017. The majority are low level incidents against anchored vessels mainly at Manila and Batangas. Vessels underway in the Sulu/Celebes Sea areas were boarded and crew kidnapped in the first quarter of 2017.
Gulf of Guinea/Nigeria
Nigeria recorded 33 incidents with no vessels hijacked. However, there were ten incidents of kidnapping involving 65 crewmembers in or around Nigerian waters. Of the 16 vessels reported being fired upon globally, seven were in Nigeria, evidencing the violent nature of attacks in these waters.
Gulf of Aden/Somalia
Nine incidents were recorded off Somalia in 2017, up from two in 2016. This increase indicates that Somali pirates still have the capability and intent to carry out attacks. The IMB urges ship masters to maintain high levels of vigilance when transiting the high-risk area and adhere to the Best Management Practices (version 4).
Attack by ship-type
The main ship-types affected are as follows:
- Bulk carrier: 38 incidents
- Product tanker: 29 incidents
- Container: 23 incidents
- Tanker: 19 incidents
- Chemical tanker 13 incidents
Despite the reported decline in piracy and armed robbery at sea, the club continues to advise members to be cautious in all affected areas. We consider that a threat still remains, despite the reduced number of incidents in 2017.
We strongly recommend that members comply with the latest version of Best Management Practices (version 4) and related guidance in all affected areas.
Crew of Barrett confirmed kidnapped
UK-based tanker owner and operator Union Maritime has confirmed that 22 crew from oil products tanker Barrett were kidnapped by pirates in the Gulf of Guinea on the 10th January.
Barrett left an anchorage off the port of Lagos on the evening of the 5th January, proceeding west until it reached the vicinity of Lomé, Togo, on the morning of the 6th January.
It departed the area on the afternoon of the 8th January and was headed east until it abruptly turned to port, towards land in Cotonou, Benin, at which point its AIS tracking data ceased updating.
The company lost contact with the Marshall Islands-registered ship, which was at anchor off Benin, West Africa, on the 9th January. Union Maritime said that it continued to work with all relevant parties to ensure the situation was resolved successfully and as quickly as possible.
“On the 10th January we alerted local maritime authorities and are exploring all possible options and efforts as we continuously monitor the situation. Whilst we are tirelessly working to locate the vessel, our primary concern is for the 22 crew on board and ensuring their safety,” the company said.
2005-built, Marshall Islands-flagged, 8,482-gt Barrett is owned by OBlue Ltd., care of manager Union Maritime Ltd of London.
Insurance News
AIG to acquire Validus for US$5.56 billion
American International Group (AIG) has entered into a definitive agreement to acquire all outstanding common shares of Bermuda-based Validus Holdings.
Validus offers reinsurance, primary insurance, and asset management services.
The transaction enhances AIG’s general insurance business, adding a reinsurance platform, an insurance-linked securities (ILS) asset manager, a presence at Lloyd’s and complementary capabilities in the US crop and excess and surplus (E&S) markets.
The aggregate transaction value is US$5.56 billion, funded by cash on hand.
The transaction includes Validus Re, a treaty reinsurer with a focus on property catastrophe, marine and specialty, bringing deep relationships with brokers and clients.
AlphaCat manages US$3.2 billion on behalf of clients by investing in ILS products.
Talbot is a Lloyd’s syndicate focused on short-tail specialty lines. The addition will broaden AIG’s technical underwriting expertise and provide access to distribution in the largest specialty insurance market in the world, according to the company. Talbot’s brokers and clients will benefit from the complete suite of capabilities which has made AIG a global leader, along with access to solutions both within and outside of the Lloyd’s market.
Western World, a US specialty property/casualty underwriter focused on the small commercial E&S and admitted markets, will add technical expertise in binding authority. In addition, AIG gains Crop Risk Services, which provides access to the North American crop insurance market.
The transaction has been unanimously recommended by the boards of directors of AIG and Validus. The deal is expected to close mid-2018, subject to approval by Validus shareholders and other customary closing conditions, including regulatory approvals in relevant jurisdictions.
London Market simplifies claims handling
A single claims agreement party model has been launched aiming to simplify how claims within the London Market are handled.
The process will enable quick and efficient authorisation of claims by allowing policy leaders to agree non-complex payments up to £250,000 on behalf of following carriers, according to a Lloyd’s Market Association (LMA) press release on the 1st February.
Participation in a single agreement arrangement will be optional and considered by brokers and carriers at point of placement.
The move represents a significant step in making the London Market more competitive and enhancing its position at the centre of the international insurance industry through the implementation of efficient working practices, according to the LMA.
Christopher Croft, CEO of the London & International Insurance Brokers’ Association (LIIBA), commented, “The broking community is delighted that we can move forward with the Single Claims Agreement as it will expedite the handling, agreement and payment of small to medium-sized losses under London subscription market placements to the benefit of clients.”
Lloyd’s CEO Inga Beale said, “In a competitive global sector, customers want and expect the London market to be easier to do business with. By ensuring that the most critical part of our business offer, the resolution of claims, can be done in a more straightforward manner, this will mean London can continue to remain an attractive proposition.”
Under the Lloyd’s Claims Scheme, following syndicates are already bound by the decision of the lead Lloyd’s underwriter for ‘standard’ claims within a set class of business thresholds, typically below £250,000.
However, a lead agreement model is not typical in the company market, and each IUA carrier has agreement rights to the claim for their proportion.
The new single claims agreement arrangement and the related model will allow the (London) slip lead to bind all followers on risk, if carriers accept the arrangement and the clause as a policy term at the point of placement.
Berkshire Hathaway gets Dubai licence
Berkshire Hathaway Specialty Insurance Company (BHSI) has opened a new office in the Dubai International Financial Centre (DIFC), while naming Alessandro Cerase as its Senior Executive Officer (SEO) and Neeraj Yadvendu as Deputy SEO and Head of Third Party Lines for the Middle East.
The move comes after BHSI received an insurance licence from the Dubai Financial Services Authority, according to a statement on the 12th February.
The new operations will provide a suite of specialty and commercial re/insurance products to its network of brokers and ceding companies with a focus on construction, energy, property, marine, casualty and executive and professional lines.
Mr Cerase joins BHSI with 20 years of global experience spanning both the engineering and underwriting sides of the insurance business. He was most recently global head of energy and engineered risk at AIG.
In addition to being the SEO, he will be leading first party lines for BHSI’s broader Asia Middle East region, which includes its other regional hubs of Hong Kong and Singapore, as well as its operations in Malaysia and Macau.
Ms Yadvendu joins BHSI after two decades in the insurance industry, most recently as regional head of casualty and financial lines at AXA Asia.
Rising piracy on Indian Ocean could raise insurance premiums, Kenya fears
Cases of piracy in the Indian Ocean off the Somalian coast increased in 2017, raising fears that sustained attacks could raise insurance and freight costs for Kenya importers.
A recent report from the International Maritime Bureau (IMB) noted that nine piracy attacks were recorded off Somalia in 2017, up from two in 2016, even though global attacks dropped to a 22-year low. Rising piracy on the Indian Ocean could lead to high insurance charges, IMB said.
IMB Director Pottengal Mukundan said that “the dramatic incident, alongside our 2017 figures, demonstrates that Somali pirates retain the capability and intent to launch attacks against merchant vessels hundreds of miles from their coastline.”
The increase in such attacks usually comes with costs such as increased insurance premiums, longer freight routes as vessels avoid hot spots and the additional cost of hiring private armed guards.
Kenya’s Daily Nation noted that, “for a country that imports more than KES1.3 trillion worth of consumer and industrial goods, the increased cost is eventually passed to the consumer through higher retail prices.”
2017 becomes costliest nat cat year on record
Weather disasters in 2017 added up to US$344 billion in global economic losses, according to the latest Aon catastrophe report.
The report reveals that there were 330 natural catastrophe events in 2017 which generated economic losses of US$353 billion – of which 97% (US$344 billion) were due to weather-related events, including hurricanes Harvey, Irma and Maria in the US and Caribbean, plus typhoon Hato in China and cyclone Debbie in Australia.
The 2017 natural catastrophe losses were 93% higher versus the 2000-2016 average.
Insured losses to the private sector and government-sponsored programmes were among the costliest ever incurred, reaching US$134 billion in 2017 – just behind the record US$137 billion in 2011.
The 2017 insured losses were 139% higher than previous year’s $56 billion, primarily due to high insurance penetration in the US which suffered a very active Atlantic hurricane season, severe weather events and wildfires.
2017 was an expensive year for the insurance industry, but the reinsurance market had an estimated US$600 billion in available capital to withstand the high volume of claims.
Steve Bowen, Impact Forecasting Director and Meteorologist, said, “The high cost of disasters in 2017 served as a reminder that we continue to face increasing levels of risk as more people and exposures are located in areas that are particularly vulnerable to major, naturally occurring events.
“As weather scenarios grow more volatile in their size and potential impact, it becomes more imperative than ever to identify ways to increase awareness, improve communication, and lower the insurance protection gap. We know natural disasters are going to occur. The question is how prepared are we going to be when the next one comes along.”
Thomas Miller acquires marine, energy consultancy
Insurance services provider Thomas Miller is acquiring marine consultancy Brookes Bell.
The value of the transaction has not been disclosed.
The transaction comes shortly after it emerged that Thomas Miller Specialty would acquire Navigators’ fixed-premium protection and indemnity business.
Brookes Bell is a marine technical and surveying consultancy with offices in Liverpool, London, Glasgow, Shanghai, Hong Kong and Singapore. It has served the marine and energy industries since 1903, providing specialist services in areas including emergency response, casualty investigation, salvage and wreck removal operations, scientific cargo expertise, forensic engineering and expert witness services.
Cyber rises to second biggest global risk
Cyber threat continues its upward trend globally, ranking second in the Allianz Risk Barometer in 2018 compared with 15th place five years ago.
Multiple threats such as data breaches, network liability, hacker attacks or cyber business interruption, ensure it is the top business risk in 11 surveyed countries and the Americas region and second in Europe and Asia Pacific, according to an Allianz press release on the 16th January.
It also ranks as the most underestimated risk and the major long-term peril.
Recent events such as the WannaCry and Petya ransomware attacks brought significant financial losses to a large number of businesses. Others, such as the Mirai botnet, the largest-ever distributed denial of service (DDoS) attack on major internet platforms and services in Europe and North America, at the end of 2016, demonstrate the interconnectedness of risks and shared reliance on common internet infrastructure and service providers.
On an individual level, recently identified security flaws in computer chips in nearly every modern device reveal the cyber vulnerability of modern societies. The potential for so-called “cyber hurricane” events to occur, will continue to grow in 2018, according to Allianz.
The Allianz Risk Barometer results show that awareness of the cyber threat is soaring among small- and medium-sized businesses, with a significant jump from rank six to rank two for small companies and from position three to position one for medium-sized companies. With regard to sector exposure, cyber incidents rank top in the entertainment & media, financial services, technology and telecommunications industries.
Business interruption (BI) remains the most important risk for the sixth year in a row (#1 with 42% of responses / #1 in 2017), ranking top in 13 countries and the Europe, Asia Pacific, and Africa & Middle East regions.
No business is too small to be impacted. Companies face an increasing number of scenarios, ranging from traditional exposures, such as fire, natural disasters and supply chain disruption, to new triggers stemming from digitalisation and interconnectedness which typically come without physical damage, but with high financial loss.
Breakdown of core IT systems, terrorism or political violence events, product quality incidents or an unexpected regulatory change can bring businesses to a temporary or prolonged standstill with a devastating effect on revenues, the press release says.
For the first time, cyber incidents also rank as the most feared BI trigger, according to businesses and risk experts, with BI also considered the largest loss driver after a cyber incident.
Cyber risk modeller Cyence, which partners with AGCS and is now part of Guidewire Software, estimates that the average cost impact of a cloud outage lasting more than 12 hours for companies in the financial, healthcare and retail sectors could total US$850 million in North America and US$700 million in Europe.
BI also ranks as the second most underestimated risk in the Allianz Risk Barometer. “Businesses can be surprised about the actual cause, scope and financial impact of a disruption and underestimate the complexity of ‘getting back to business’. They should continuously fine tune their emergency and business continuity plans to reflect the new BI environment and adequately consider the rising cyber BI threat,” said Volker Muench, global property and BI expert, AGCS.
Chris Fischer Hirs, CEO of AGCS, added, “For the first time, business interruption and cyber risk are neck-and-neck in the Allianz Risk Barometer and these risks are increasingly interlinked.”
“Whether resulting from attacks such as WannaCry, or more frequently, system failures, cyber incidents are now a major cause of business interruption for today’s networked companies whose primary assets are often data, service platforms or their groups of customers and suppliers.
However, last year’s severe natural disasters remind us that the impact of perennial perils shouldn’t be underestimated either. Risk managers face a highly complex and volatile environment of both traditional business risks and new technology challenges in future.”
IUA highlights challenges for cyber growth
The rapid growth of cyber threats has created challenges for the insurance industry in developing underwriting talent, acquiring claims data, establishing modelling techniques and securing reinsurance capacity, according to the International Underwriting Association of London (IUA).
A new report by the IUA’s Cyber Underwriting Group urges national authorities to help address some of these issues and raise awareness of liabilities. Cyber is seen as a major growth area within the re/insurance industry.
The document states that traditional classes of insurance business do not usually provide comprehensive cover for cyber incidents. Policies contain gaps in cover that require extensions or the support of specific cyber products.
There is a wide and competitive range of cyber insurance products available in the London Market. However, more work needs to be done on collecting data about the frequency and cost of cyber claims. The IUA’s Cyber Policy Positions paper calls for a more coherent and consistent recording of cyber incidents.
“Collating data on cyber incidents is often made difficult by differing terminologies and claims notifications are sometimes put on hold as long-term investigations into the causes take place,” said Matthew Hogg, Chairman of the IUA’s Cyber Underwriting Group. “The IUA’s Cyber Underwriting Group would welcome the establishment of a registry system which collects and shares statistical information on the cost and frequency of cyber losses and claims across Europe.
“The role of government, regulators and others will be critical in establishing useful data for underwriting purposes, as well as for risk management advice.”
The Policy Positions Paper also strongly supports efforts to companies at operational risk management level and in the boardroom about their cyber risk exposures. As part of this wider education process, the Cyber Underwriting Group recommends continued analysis of existing cyber products and extensions to traditional policies.
“As the market for cyber insurance matures it will be important to review any gaps in coverage and uncertainties as new threats emerge,” Mr Hogg noted.
“Continuous professional development of insurance practitioners is also essential. We need an educated marketplace which has rigour in its approach to provide meaningful cover for all clients.”
People in the News
Canopius boosts energy practice with Marsh hire
Specialty re/insurer Canopius has hired Victoria Phillips as an energy underwriter from Marsh, based in Singapore.
Ms Phillips will report to Geoff Tin, Head of Energy, and work closely with the London team as well as the renewable energy team in the Netherlands.
BRG hires former general counsel of ExxonMobil captive
Berkeley Research Group (BRG) has appointed Christopher Heckman to the firm’s complex insurance claims practice as Managing Director, based in Dallas.
Mr Heckman previously served as general counsel of ExxonMobil Risk Management and its captive insurer, Ancon Insurance Company. For the past 25 years, he was principle insurance claims advisor to ExxonMobil and its global affiliates.
Mr Heckman managed and facilitated large liability insurance claims, including the Exxon Valdez and global environmental and asbestos claims of Exxon, Mobil and ExxonMobil.
Sompo International expands in the London Market
Sompo International, the Bermuda-based specialty provider of property/casualty re/insurance has made a series of leadership appointments in the London Market, a “strategic growth area” for the company.
Clifford Easton, Executive Vice President, will continue to coordinate the Sompo International marine & energy business globally and will be taking on additional leadership responsibilities related to Japan Interest Account business in Europe.
Tom Houston has been promoted to Head of Energy, London Market Insurance. Mr Houston joined Sompo International in March 2014 as senior vice president, energy, with a focus on exploration and production and other upstream energy accounts. His previous experiences include energy underwriting at Hiscox and Catlin’s London Syndicates.
Ian Keegan has been promoted to the new role of Head of London Market Aerospace, Energy & Marine and will be a deputy active underwriter for Sompo International’s Syndicate 5151. Mr Keegan joined the company in April 2016 as executive vice president, head of aerospace, where he established the company’s presence in the aerospace market in London. Previously, he launched and managed similar aviation units at Hiscox and Faraday Underwriting. He reports to Richard Housley, Chief Underwriting Officer, London Market Insurance and Active Underwriter of Syndicate 5151.
Paul Ashworth has joined the company’s London Market insurance platform as Head of Marine Insurance, managing a portfolio which includes hull & liability and cargo & specie marine classes. Mr Ashworth has built and managed marine portfolios from both a carrier and broker perspective over his 30-year career in the London Market, underwriting through both company and Lloyd’s syndicates.
XL Catlin appoints MacColl as global hull leader
XL Catlin has promoted Mike MacColl to the position of Global Practice Leader for hull.
Mr MacColl previously served as the carrier’s head of hull for the UK. He succeeds Mike Talbot, who is retiring after a professional career spanning 50 years.