Capacity amongst Power Generation insurers in London remains robust following a generally profitable 2013. Numerically, the syndicates and companies who are able to write this class of business continue to grow, but there is also a note of caution following previous losses in the sector that means many insurers still choose to maintain condensed line sizes and/or inner policy limit restrictions.
A noticeable drop in Power Generation incident statistics for 2013 was a factor in marginal reductions being offered during treaty renewals, helping intensify the existing competitive pressures within the market. Coupled with increased premium income targets and senior management directives to hold or expand market share, a softening market outlook is now becoming very apparent.
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For further information, please contact Richard Mockett, Partner, Energy on +44(0) 207 459 5642