Research Review

Energy Market Review 2019 – Adjusting to change

April 4, 2019

Produced by our Natural Resources team in London with contributions from colleagues all over the world, Willis Towers Watson’s Energy Market Review 2019 has been published at a time when we are seeing energy industry insurance buyers, risk intermediaries and insurers having to face up to adjusting to significant changes in our different business environments. How they adjust to these changes may be critical to their future prosperity in the years ahead

Our Review shows that these adjustments can be split into three broad areas. The issues highlighted below are directly addressed within the publication:

  • Adjustments to the energy industry business environment.
    How will the industry adjust to renewed pressures to reduce carbon emissions? How are liquefied natural gas (LNG) risks best managed, as this sector of the industry continues to grow exponentially? How will the industry mitigate the risks inherent in digitisation? As more Private Equity firms take a leading role in managing energy industry assets, what strategies can they employ to mitigate the risks involved? And finally, how are current geopolitical tensions around the world impacting the industry?
  • Adjustments to current risk management methodologies.
    How are new ways of combining data with analytics helping energy companies to manage their risks in a more effective way? And after a difficult 2018, how is Oil Insurance Limited (OIL) adjusting its approach to rating mutualised risk?
  • Adjustments to energy insurance market trading conditions.
    After several years of increased capacity, falling rates and declining premium incomes, we are now seeing a turnaround in almost all our markets. In some, such as Upstream, the turnaround is currently relatively modest; in others, such as Downstream, we are looking at an accelerating rating upswing. What will be the best way for energy companies to respond to these changes? Are there strategies they can form to offset the worst effects of the current market upswing.
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