Apprehension in the market

Sharp increases in the price of oil, steel, building materials and contractor day rates have resulted in significantly increased exposures to energy insurers. Despite loss levels in the energy insurance sector remaining low for a second successive year, there is now real apprehension in the market as rating levels continue to soften significantly. This is the key finding of the latest Energy Market Review from Willis. Phillip Ellis , Chairman of Willis Energy, believes that this is a dangerous situation as more expensive losses are bound to arise at some stage in the future. He explains that while some companies are operating their assets in ways that are far superior to the past, for others the run of good luck is just that. He says that it is unlikely this run of low loss activity will continue indefinitely. He believes, that ultimately, something will break