Published on 12 December 2022
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Energy Market Update: Casualty
Published on 12 December 2022
Diversification of the book away from exclusively writing US auto exposed risk is becoming a theme.
North American Energy Casualty
With regard to market capacity, 2022 has been an uneventful year so far with little changes throughout the energy casualty world.
Now we are in the 4th quarter of 2022, many Insurers are continuing to feel the weight of past years claims deterioration. 2019, specifically, continues to worsen with reserves once again proving insufficient.
Underwriters continue to manage their line sizes, with a push to pull back on large limit stretches.
North American clients are submitting significantly increased exposure metrics allowing for technical rate reductions. Metrics are doubling in some areas with associated premiums increasing by 20%-25%.
Even with exposures increasing, we aren’t seeing the appetite from insured’s to purchase higher limits.
Brokers must look at renewals with eyes wide open as capacity may now be available to requote placements with capacity available to fill layers.
Climate Change Exclusions are being enforced by majority of market for North American energy clients.
International Energy Casualty
Given the legal environment in North America we are starting to see more and more ‘conventional’ marine and energy liability markets explore international opportunities which historically been placed exclusively into the international casualty market. Diversification of the book away from exclusively writing US auto exposed risk is becoming a theme. Rate increases are minimal in most areas and there is ample capacity to restructure the smaller towers. The market are actively looking to replace premiums lost due to sanctioned territories helping to keep rate increases to a minimum.
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Billy Quelcutti
Billy returned to London in 2021 having been on a secondment to the US where he was working for Alesco’s regional office in Houston as a local wholesale energy broker. Having spent over 5 years in both the London and Houston energy markets, Billy has extensive knowledge of the global energy space from both an insurance and customer perspective. Billy originally joined Alesco in London in 2014 where he was recruited to focus on North American energy casualty business. Billy specializes in all aspects energy, power and renewables.
Billy started his career in 2010 for Price Forbes & Partners as an energy casualty technician and after a few years added some broker responsibilities to his skillset and began designing and placing large multinational energy casualty placements across the London, European and International markets.
