Insurance Program Results
Energy Companies: Excess Capacity Brings New Products
The excess number of insurers in the energy market will bring about widespread modification of coverage and the launch of new products and services as competition ramps up. More carriers will be willing to partner with agencies to present more appealing products and to pick up premium dollars through additional distribution channels. This wider range of products and services will be aimed at attracting buyers after a number of carriers jumped at the opportunity to enter the market toward the end of 2014, during the domestic oil boom, which was supported by fracking.
Big Push Out of Lloyd’s
The new partnership between CNA Hardy’s Lloyd’s syndicate and DUAL, an international underwriting agency, could write over $1 billion of gross written premiums in 2015. The three-month-old venture specializes in marine and energy business and is aimed at the off-shore industry. Ryan Specialty Group’s Global Special Risks group also taps Lloyd’s for its young Upstream Solutions Energy Package. The Upstream Solutions Energy Package provides products for oil and gas operators and non-operators of North American-based production companies.
The package offers control of well coverage with limits up to $50 million, primary general liability with limits up to $1 million/$2 million, umbrella coverage with limits up to $10 million and property coverage with limits up to $20 million. A Lloyd’s consortium led by Ascot Underwriting Ltd. specifically for the renewable energy industry was launched in May with a capacity of up to $165 million per risk. The consortium is designed to provide easy access to large scale capacity, especially for accounts working with onshore wind and solar installations.
Crittenden expects these Lloyd’s programs could see some competition from ProSight Specialty Insurance, which partnered with the North American Board of Certified Energy Practitioners (NABCEP) in March. ProSight’s program offers an insurance plan specifically for NABCEP certified solar professionals. ProSight offers solar contractors with complete coverage by combining business in general liability with professional liability coverage, property insurance, inland marine, umbrella liability, builders risk, workers’ comp and auto insurance.
Leading writers of commercial energy insurance, such as XL, Zurich, Ironshore and Travelers, will likely remain strong competitors with modification to their coverage. Earlier this year, Zurich repackaged its onshore terrorism coverage into property programs since terrorism is still excluded from most property policies. Zurich also deleted cyber exclusions to make its program more appealing.
In April, Ironshore’s Global Property Energy division increased its limits from $25 million to $35 million for all classes of business within the specialty property energy sector. It also has plans to increase sub-limits for contingent business interruption and supply chain risks. Although not a leading carrier in this segment, Berkley remains competitive. Through MGA J.H. Blades & Co. Inc. and the Swett & Crawford Dallas Energy team, Berkley joined with Wild Well Control Inc. in April to provide a rapid response program for Blades & Co. policyholders. This program strictly focuses on early intervention pollution control and mitigation for all sectors of the U.S. energy market.
Carriers’ adjustments to policy language will also likely relate to weather, one of the primary drivers of claims in the energy market. Most energy operations face extreme weather conditions due to the off-shore locations and on coastlines. Storm surges, though uncommon, are not yet adequately addressed yet still a constant threat to off-shore power production facilities. Cyber-attacks are also a concern, leading to some carriers to begin removing cyber exclusions from policies.
Copyright © Crittenden Research Inc., July 20, 2015
IronPro Energy and Marine Coverage
Administered By: Ironshore
Distribution: Direct/Broker
| Industries: |
Energy Companies |
|---|
Carriers: Ironshore Inc.
Coverage: Property & Casualty
Limits:
Rapid Response for Energy Risks
Administered By: Swett & Crawford Group
Distribution: Program Administrator
| Industries: |
Energy Companies |
|---|
Carriers: Berkley Insurance Co.
Coverage: Pollution Legal Liability
Limits:
Upstream Solutions Energy Package
Administered By: Ryan Specialty Group
Distribution: MGA
| Industries: |
Energy Companies |
|---|
Carriers: Lloyd's of London
Coverage: General Liability, Property & Casualty , Umbrella/Excess
Limits: up to $50 million
Employment Practices Liability
Administered By: Kinsale Insurance
Distribution: Carrier Direct
| Industries: |
Accountants & Accounting Services, Architects & Engineers (A&E), Art Galleries/Fine Art/Museums/Antique Dealers, Auto Service and Repair, Auto/Car Dealerships, Aviation Risks & Airports, Banks, Brokers/Dealers, Camps (Youth, Sports & Enrichment), Chemical Manufacturers/Distributors, Commercial Auto (Public Transportation), Construction Equipment/Machinery/Materials, Educational Risks (School Administrators), Energy Companies, Film Risks, Gas Stations, Hospitality (Hotels/Motels), Insurance Agents, Insurance Companies, Investment Advisers, Lawyers, Logging/Lumber/Forestry Risks, Manufacturers (Hardware), Manufacturers/Manufacturing Risks, Mine/Mining Risks, Miscellaneous Risks, Museums, Nonprofit Organizations, Real Estate Agent/Broker, Research/Research Organizations (Clinical, Etc.), Restaurants, Retail, Social Services, Utility Companies |
|---|
Carriers: Kinsale Insurance Co.
Coverage: Bodily/Personal Injury, Employment Practices Liability (EPL)
Limits: up to $5 million/$5 million (Primary Limits)
Energy
Administered By: XL Catlin (Formerly Catlin)
Distribution: Direct/Broker
| Industries: |
Energy Companies |
|---|
Carriers: Catlin Specialty Insurance Co.
Coverage: Environmental/Pollution Liability, Excess, Professional Liability, Umbrella/Excess
Limits: up to $10 million (Excess)
Energy (Excess)
Administered By: James River Insurance Co.
Distribution: MGA
| Industries: |
Biotech, Consultants/Consulting Risks, Contractors, Drilling/Petroleum Risks, Energy Companies, Mine/Mining Risks, Renewable Energy Risks |
|---|
Carriers: James River Insurance Co.
Coverage: Contractors Pollution , Excess, General Liability, Products Liability, Professional Liability
Limits: up to $11 million (Lead Excess or part of higher excess layer - supported or unsupported)
Energy - Primary
Administered By: James River Insurance Co.
Distribution: MGA
| Industries: |
Biotech, Consultants/Consulting Risks, Contractors, Drilling/Petroleum Risks, Energy Companies, Environmental Consultants , Mine/Mining Risks, Public Companies , Renewable Energy Risks |
|---|
Carriers: James River Insurance Co.
Coverage: Contractors Pollution , Excess, General Liability, Products Liability, Professional Liability
Limits: up to $1 million (MEL - Combined Single Limit), up to $5 million/$10 Million (CGL), up to $5 million Occurrence (Pollution, Professional, Products)
E&O For Tech/Media/Telecom
Administered By: XL Catlin
Distribution: Direct/Broker
| Industries: |
Accountants & Accounting Services, Colleges & Universities, Digital & Software Development, Distribution Risks, Energy Companies, Financial Institutions, Healthcare Systems, Insurance Agents, Lawyers, Manufacturers (Hardware), Manufacturers/Manufacturing Risks, Real Estate Agent/Broker, Retail, Technology Risks, Telecommunication Services |
|---|
Carriers: XL Insurance Co.
Coverage: Cyber Liability, Data Security, Errors & Omissions (E&O), Excess, Network Security Liability, Privacy Liability/Notification Expense, Umbrella/Excess
Limits: up to $10 million
Power & Utilities
Administered By: StarStone
Distribution: Carrier Direct
| Industries: |
Energy Companies, Renewable Energy Risks, Utility Companies |
|---|
Carriers: StarStone National Insurance Co., StarStone Specialty Insurance Co.
Coverage: Business Interruption, Commercial Property, Equipment Breakdown
Limits: up to $30 million
Site Pollution Liability Insurance Policy (SPL)
Administered By: XL Catlin (Formerly Catlin)
Distribution: Direct/Broker
| Industries: |
Chemical Manufacturers/Distributors, Commercial Real Estate, Contractors, Energy Companies |
|---|
Carriers: Catlin Specialty Insurance Co., XL Catlin Insurance Co., Inc.
Coverage: Business Interruption, Environmental/Pollution Liability, Property
Limits: up to $10 Million (Excess)
XL Catlin Energy Insurance
Administered By: XL Catlin
Distribution: Direct/Broker
| Industries: |
Energy Companies |
|---|
Carriers: XL Insurance Co.
Coverage: Property & Casualty
Limits:
ACE Catastrophe Management 2.5
Administered By: Chubb Ltd. (Formerly ACE Group)
Distribution: Carrier Direct
| Industries: |
Banks, Commercial Real Estate, Energy Companies, Financial Institutions, Hospitality (Hotels/Motels), Manufacturers/Manufacturing Risks |
|---|
Carriers: ACE Group
Coverage: Accident & Health, Property
Limits: up to $2.5 million
Energy Insurance (offshore & Onshore)
Administered By: Allianz Global Corp. & Specialty
Distribution: Direct/Broker
| Industries: |
Chemical Manufacturers/Distributors, Energy Companies, Storage Tanks (Above/Under Ground) |
|---|
Carriers: Allianz Global Corp. & Specialty
Coverage: Boiler & Machinery, Business Interruption, Care, Custody and Control Liability, Equipment Breakdown, Excess, Hull & Machinery, Machinery & Equipment, Marine, Third-Party Liability
Limits: Call - For Limits
Energy Surety
Administered By: RLI
Distribution: Direct/Broker
| Industries: |
Energy Companies, Renewable Energy Risks |
|---|
Carriers: RLI Insurance Co.
Coverage: Surety
Limits: up to 0 (Contact Underwriter)
Hiscox CyberClear
Administered By: Hiscox USA
Distribution: Carrier Direct
| Industries: |
Accountants & Accounting Services, Advertising/Printers/Authors, Consultants/Consulting Risks, Education & Nonprofit, Energy Companies, Hospitality (Hotels/Motels), Lawyers, Nonprofit Organizations, Small Businesses, Technology Risks |
|---|
Carriers: Hiscox Insurance Co. Inc.
Coverage: Cyber Liability
Limits: up to $10 million (Across the board, with no standard sub-limits)
LIU Environmental
Administered By: Liberty Intl Underwriters
Distribution: Carrier Direct
| Industries: |
Artisan & Trade Contractors, Commercial Auto, Energy Companies, Gas Stations, Hospitals, Public Entities, Real Estate Risks (Municipal Property), Retail (Convenience Store), Schools |
|---|
Carriers: Liberty Mutual Insurance Co.
Coverage: Pollution Legal Liability
Limits: up to $25 million (limit of capacity, primary or excess)
Security and Privacy Protection
Administered By: Zurich
Distribution: Carrier Direct
| Industries: |
Energy Companies, Financial Institutions, Healthcare Systems, Private Companies, Public Companies |
|---|
Carriers: Zurich
Coverage: Broadcaster Media Liability , Business Income/Extra Expense, Cyber Liability, Data Security, Network Security Liability, Privacy Liability/Notification Expense
Limits: up to $25 million
Traditional Energy Solutions for Large Accounts
Administered By: Chubb Ltd. (Formerly ACE Group)
Distribution: Carrier Direct
| Industries: |
Commercial Real Estate (Mining/Utilities), Energy Companies, Renewable Energy Risks, Utility Companies, Workers Compensation |
|---|
Carriers: ACE Group
Coverage: Commercial Auto, Excess, General Liability, Umbrella/Excess, Workers' Compensation
Limits: up to $5 million (GL and AL), up to $10 million (Excess Workers Compensation and Texas Employers Indemnity (non-admitted))
Umbrella PlusSM Commercial Umbrella (Energy Industry)
Administered By: Chubb Ltd. (Formerly ACE Group)
Distribution: Carrier Direct
| Industries: |
Chemical Manufacturers/Distributors, Energy Companies, Renewable Energy Risks, Utility Companies, Utility/Transit/Port/Housing Authorities |
|---|
Carriers: ACE Group
Coverage: Environmental/Pollution Liability, Excess, General Liability, Umbrella/Excess
Limits: up to $25 million (Per occurrence/aggregate)
Umbrella PlusSM Commercial Umbrella Liability (Construction)
Administered By: Chubb Ltd. (Formerly ACE Group)
Distribution: Carrier Direct
| Industries: |
Builders Risk/Home Builders, Contractors, Energy Companies, Healthcare Systems, Renewable Energy Risks |
|---|
Carriers: ACE Group
Coverage: Excess, Umbrella/Excess
Limits: up to $25 million (Per occurrence/aggregate- additional limits may be available)