Menu
iPMI Magazine Is Proudly Sponsored By:
For a healthier journey.

iPMI Magazine Has Moved

iPMI Magazine successfully rebranded to iPMI Global in 2023 and has moved to a new home on the internet. To visit the brand new international private medical insurance business intelligence platform, please go to www.ipmiglobal.com

Global Energy and Power Insurance: A Worldwide Review

According to new research published by Finaccord, energy and power insurance premiums worldwide, including business handled by captive and mutual insurers, amounted to around USD 23.56 billion in 2014 having increased from around USD 21.48 billion in 2010, which was equivalent to a compound annual growth rate in nominal terms of 2.3%.

In 2014, this total market segmented between around USD 14.16 billion from energy insurance premiums and around USD 9.40 billion from power insurance premiums, with the US by far the largest market at around USD 8.38 billion followed by Canada at USD 1.77 billion and China and USD 1.45 billion. With regards to energy insurance premiums, in particular, these broke down between around USD 7.15 billion from upstream insurance, around USD 2.17 billion from midstream insurance and around USD 4.84 billion from downstream insurance.

Commented Christian von Celsing, Consultant at Finaccord, "At the global level, upstream energy insurance premiums have been growing at twice the rate of midstream premiums while downstream premiums actually declined between 2010 and 2014. The more rapid increase in the value of the upstream segment can be attributed to rising exploration and production worldwide. On the other hand, it is generally the case that insurance pricing for downstream assets has been subject to the most pressure."

As for power insurance premiums, these broke down in 2014 between around USD 7.28 billion from conventional power insurance and around USD 2.13 billion from renewable and other power insurance, and a key global trend has been the rapid growth of renewable and other power insurance premiums given that these had a worldwide value of around USD 1.55 billion in 2010. "Premiums deriving from insurance for solar and wind power have been rising especially rapidly", continued Christian von Celsing. "This can be expected to continue in future albeit the policies of national governments in this field are often inconsistent or uncertain."

Looking ahead to 2018, Finaccord forecasts that energy and power insurance premiums worldwide will increase to a value of around USD 24.59 billion under a low oil price scenario (segmenting between around USD 14.14 billion in energy insurance premiums and around USD 10.45 billion in power insurance premiums) and to around USD 26.15 billion in the event of a high oil price scenario (segmenting between around USD 15.70 billion in energy insurance premiums and the same value for power insurance premiums as in the low oil price scenario). The difference here is attributable mainly to the upstream energy (oil and gas) segment, which fluctuates between representing 28% and 32% of overall energy and power insurance premiums in the low and high oil price scenarios, respectively.

Concluded Christian von Celsing, "While the future price of oil has little impact on the future value of power insurance, it would influence the outlook for energy insurance, especially upstream insurance. Furthermore, while far from an exhaustive list, other key trends impacting the outlook for energy and power insurance worldwide include on one hand the likely or possible growth of hydraulic fracturing (fracking), deepwater drilling, Arctic development, solar power and wind power, all of which are conducive to growth and innovation, and on the other, persistent underwriting over-capacity, which depresses premiums, especially in mature markets."

Read more...

Insurance Capacity In Global Energy Markets Leaps To Highest Level This Century

Theoretical insurance capacities in both the upstream and downstream oil and gas insurance markets have increased to the highest levels seen this century. Heavily over-capitalised global (re)insurance markets combined with a glut of new capacity from non-traditional providers - such as pension funds, hedge funds and investment banks - has increased competitive pressures in the energy insurance market to unprecedented levels, according to Willis's annual Energy Market Review.

Total theoretical upstream market capacity now stands at US$5.7 billion and the equivalent downstream total is now at US$4.6 billion, according to the report. Meanwhile, statistics from Lloyd's of London suggest that the overall energy premium pool available to insurers may be reducing for both markets. Given these conditions, Willis expects it may take more than a run of catastrophic losses to provoke any significant capacity withdrawal from the energy sector. In 2013 the energy loss record was no worse than average, noted Willis's report.

On the upstream side, the Willis Energy Loss Database recorded only a handful of losses in excess of US$200 million, while on the downstream side, although there have been three serious incidents in Argentina, the USA and Canada, the loss record continues to improve. At the same time, the report notes that the energy industry itself might be sitting on an uninsured cyber-attack time bomb. While insurance cover is readily available for non-catastrophic cyber-attack losses to data and intellectual property, it can be much more challenging to access cover for a truly catastrophic event involving physical loss or damage or business interruption running into billions of dollars. Certain markets, however, have emerged recently with the appetite and capacity to provide energy companies with at least a degree of cyber-attack insurance cover.

Commenting on energy insurance market conditions, Alistair Rivers, Global Head of Natural Resources at Willis, said, "With no obvious alternative investment opportunities emerging, and with interest rates around the world still low in relative terms, capital providers are likely to maintain their funds in the (re)insurance markets where they are currently deployed - at least for the short term. Energy market capacity is therefore likely to continue to be available, even if the sector falls into unprofitability."

He continued, "The difficulty with predicting how market conditions will turn out in the next few years is that this is the first time we have seen capital deployed in the insurance markets that is unlikely to be put off by short term underwriting unprofitability. In previous market eras, we have always found that a major catastrophe or series of losses -- for example, Piper Alpha, 9/11 and the 2005 Gulf of Mexico hurricanes -- has led to a withdrawal of capacity and harder market conditions. But now we think it will take more than a headline-grabbing loss to precipitate a withdrawal. Capital providers would have to find an alternative haven for their money if they are to withdraw from the insurance arena."

Read more...

Subsea Cables Identified As Major Insurance Risk For The Offshore Wind Industry

DNV GL, announced the launch of its guideline "Subsea power cables in shallow water renewable energy applications" (DNV-RP-J301), which provides a comprehensive review of subsea power cable practice and advice for managing the risk commonly associated with the cables.

The recommended practice, which is free to download from www.dnvgl.com/rules-standards/default.aspx#2, is the most comprehensive of its type in the industry. Technical guideline covers entire lifecycle of subsea power cables, from concept development to decommissioning, and is a comprehensive resource of project guidance.

Many existing offshore wind farms have faced subsea power cable problems caused by underestimation of complexities and interrelationships Guideline will become essential tool for stakeholders involved in renewable energy projects, improving safety and lowering costs for the wind industry Problems with subsea cables have affected many offshore wind farms and damage to cables has been identified as a major insurance risk for the offshore wind industry.

Cable related problems are costly and most often arise from inadequate risk identification, lack of planning, sub-standard design and deficiencies in how procedures are applied. To date, cabling failures have cost millions of euros in delays and numerous legal disputes.

Read more...

International SOS And China National Petroleum Corporation Establish Strategic Partnership

China National Petroleum Corporation (CNPC) and International SOS have confirmed their partnership by signing a Global Strategic Partnership Framework.

This partnership dates back to 2000, when International SOS provided global medical and security assistance support to BGP, one of CNPC’s subsidiaries. Since then, both parties have continued to explore collaboration opportunities within the CNPC Group and other subsidiaries. International SOS currently provides CNPC Group and its subsidiaries with world-class medical and travel security support in over 30 medical staffing projects across 12 countries.

Mr. Zhang Xin, General Manager of the Foreign Affairs Department of CNPC received a delegation led by Mr. Laurent Sabourin, Group Managing Director of International SOS. The signing ceremony took place at CNPC’s global headquarters in Beijing, China. Mr. Zhang Xin and Mr. John Williams, International SOS Managing Director of China, were present to sign the framework. Mr. Zhang and Mr. Sabourin discussed how both parties can strengthen this partnership further.

By signing the new framework, they confirmed their commitment to forming a stronger global collaboration where International SOS will provide comprehensive medical and security support to CNPC’s expatriates and international travellers.

As China’s leading oil and gas company, CNPC is continuously expanding its global operations and now has a presence in over 70 countries. Many are in extremely challenging regions where medical and security support is inadequate. The wellbeing of its employees has always been CNPC’s top priority. This framework further demonstrates CNPC’s commitment to provide Duty of Care to its employees. As well as support in medical and security emergencies, CNPC will also work with International SOS to provide preventative medical support, as well as pre-travel medical and security awareness training to its employees.

Read more...

Round Table: Critical Considerations When Designing Individual Expat Medical Insurance Plans

Critical Considerations When Designing Medical Insurance Plans

Whats important when designing medical insurance plans for overseas assignments, relocation, business and leisure travel? How are insurers viewing the market and is there a shift towards short-term cover, for individual expatriates and travelers

Job Title: C-Level ONLY

Questions:

What factors must one consider when designing health and medical insurance plans for individual expatriates?

Talk us through your under writing capabilities and ideas: (think about Full medical underwriting, Continuing Personal Medical Exclusions (CPME) and Moratorium)

What benefits does full medical underwriting bring?

How do your private medical insurance plans cover pre-existing conditions?

What is the key to success when designing health insurance plans for individual expats?

Can you talk us through your distribution channels and any new trends you have identified?

How does designing a good expatriate health insurance product equal quality driven healthcare anywhere, at any time?

How important is the portability of an individual expatriate insurance plan?

How can insurers add value to expatriate health insurance plans?

Currently, what is your most popular and appropriate plan for an individual expat working on a short-term assignment?

What new plan features and benefits can we expect to see in the next 5 years?

Specifics: iPMIM Executive Round Tables are not open to all and remain invite only. You may apply for a position if you satisfy the following criteria:

  • You are a specialist and recognised underwriter or provider of private medical insurance products;
  • You have an established network of third party service providers including healthcare providers and distribution partners.

PLEASE note that satisfying the criteria and applying will not guarantee a position at the table.

Participants enjoy:

  • Complete inclusion in 4 executive round tables;
  • Full professional executive bio;
  • Company logo;
  • Company bio;
  • Single or double page advertisement;
  • Complete online promotion.

About International Private Medical Insurance Magazine (iPMIM) Round Tables

The aim of iPMIM Round Tables is to facilitate Dialog and Debate at an Industry and Government level. Bringing together International Industry Leaders and Policy Makers, iPMI Magazine Round Tables represent the perfect arena for educational, interactive, cross border, cross culture and cross industry discussion, at the highest level.

 

Read more...

Round Table: The Effects of the Maritime Labour Convention on the Global Insurance Industry

The Effects of the Maritime Labour Convention on the Global Insurance Industry

The Maritime Labour Convention (MLC) is an International Labour Organization convention established in 2006 as the Fourth pillar of international maritime law and embodies "all up-to-date standards of existing international maritime labour Conventions and Recommendations, as well as the fundamental principles to be found in other international labour Conventions".

Title 4 of the MLC covers Health Protection, Medical Care, Welfare and Social Security Protection

Medical care on board ship and ashore: Seafarers should be covered for and have access to medical care while on board; in principle at no cost and of a quality comparable to the standards of health care on shore. Countries through which territory a ship is passing should guarantee treatment on shore in serious cases.

Shipowners' liability: Seafarers should be protected from the financial effects of "sickness, injury or death occurring in connection with their employment". This includes at least 16 weeks of payment of wages after start of sickness.

Health and safety protection and accident prevention: A safe and hygienic environment should be provided to seafarers both during working and resting hours and measures should be taken to take reasonable safety measures.

Access to shore-based welfare facilities: Port states should provide "welfare, cultural, recreational and information facilities and services" and to provide easy access to these services. The access to these facilities should be open to all seafarers irrespective of race, sex, religion or political opinion.

Social security: Social security coverage should be available to seafarers (and in case it is customary in the flag state: their relatives).

Job Title: C-Level ONLY

Specifics: iPMIM Executive Round Tables are not open to all and remain invite only.

You may apply for a position if you satisfy the following criteria:

  • You are a specialist and recognised underwriter or provider of private medical insurance products for the maritime industry;
  • You have an established network of third party service providers including healthcare providers and distribution partners.

Participants enjoy:

  • Complete inclusion in 4 executive round tables;
  • Full professional executive bio;
  • Company logo;
  • Company bio;
  • Single or double page advertisement;
  • Complete online promotion.

Click here to see a demo of how the round tables will be published.

Questions:

  • What has the Maritime Labour Convention meant for the insurance industry?
  • What insurance plan do you provide for the maritime and marine industry?
  • What opportunities exist for insurers in the maritime and marine business?
  • What challenges do insurance companies face in the marine and maritime industry?
  • How complex an operation is the repatriation of crew, to suitable medical facilities, in the case of an incident?
  • In the case of a mass casualty disaster, how prepared is the industry to respond?
  • How prepared are payor provider networks for such situations?
  • With an estimated 1.5 million workers, the Maritime Industry crosses cultural, political and physical borders every day.
  • How popular are value added services like Employee Assistance Services, in the maritime and marine industry?
  • What is important when designing maritime and marine insurance plans?
  • How can maritime insurance plans assist in the fight against piracy in the Indian Ocean?
  • How will the maritime and marine industry develop over the next 5 years and what will this mean for insurance companies?

About International Private Medical Insurance Magazine (iPMIM) Round Tables

The aim of iPMIM Round Tables is to facilitate Dialog and Debate at an Industry and Government level. Bringing together International Industry Leaders and Policy Makers, iPMI Magazine Round Tables represent the perfect arena for educational, interactive, cross border, cross culture and cross industry discussion, at the highest level.

To apply for a position please click here.

Read more...
Subscribe to this RSS feed

Connect Engage Protect

Powered by iPMI Magazine, iPMI Magazine Round Tables facilitate the best industry dialog and debate, at an industry and government level. iPMI Magazine Round Tables host the most important industry players and VIP's from various sectors of the international private medical insurance industry.

International Private Medical Insurance companies, emergency assistance networks and all related service provider segments like air and ground ambulance are involved. Didactic, executive, informative and in-depth group business meetings.

Educate, discuss and lead from the front. Learn from peers and network with new clients, iPMI Magazine Round Tables are designed by the industry, for the industry.