ENERGY MARKET ON THE CUSP OF CORRECTION, SAYS JLT

London market broker Jardine Lloyd Thompson (JLT) says that the energy insurance market may be on the cusp of a correction. In its recent market update, JLT said that its energy clients had enjoyed broadening cover and “healthy” premium reductions in the second quarter of 2017. However, reduced income and worsening loss ratios, as well as an increase in buyers seeking long-term deals, point to a "market on the cusp”, it said. Upstream rates at renewal are between minus 7.5 % to 12.5 %, although “pricing boldness is receding from the levels of desk quotes in fashion earlier in the year,” according to JLT. For downstream energy, rate reductions averaged 10 to 15 points.