We are pleased to launch the latest edition of our power and energy newsletter, which provides news, opinions and advice on risk and insurance topics affecting energy and power generation companies. In this edition, our main feature focuses on product quality management (PQM).
MAIN FEATURE COVERED IN THIS EDITION
The downstream energy insurance market is continuing to harden due to a poor loss record over a number of years and reduced capacity. In contrast, due to a benign loss environment and no discernible withdrawal of capacity, the upstream energy insurance market has had a quiet six months in 2019.
2019 energy losses (physical damage and operator’s extra expense but excluding third party liabilities) of USD 10 million or more that we are aware of at the time.
With changes constantly taking place in the insurance market, here we provide a short summary of the key market movers and people that have recently been in the news.
This regular feature contains details of recent rulings on four insurance-related court cases.
In this regular feature, we pick one common clause found in energy insurance that is often not well understood and clarify its purpose. In this edition, we look at non-vitiation clauses.
Product quality is an emerging risk with global reported incidents increasing year-on year. This is predominately driven by new regulation, more complex supply chains and the cost of production economic pressures for operators. Non-conforming products can cause serious public safety concerns while triggering significant financial and reputational damage for the liable companies.