NEW ENERGY INSURANCE PRODUCTS AND DEVELOPMENTS

03 October 2018

Tim Clarke will be joining the JLT Energy team in London later this year as a Senior Partner. Tim has worked in the Energy market for over 30 years and joins us from Lockton Global Energy where he was Co-leader of the Energy team in London, and before that worked at both Aon and Marsh Energy. Over his career, Tim has worked on most sides of the Oil and Gas Industry and in most geographies; but is probably best known for his work with UK listed Upstream companies.

Lloyd’s of London is reviewing all aspects of its business (according to Reuters) including its centuries-old structure, to ensure it is cost-competitive and responsive to both clients and members, especially after Britain leaves the EU. Asked whether Lloyd’s was conducting a strategic review, Chairman Bruce Carnegie-Brown told Reuters he would not use that term stating “To me a strategic review implies some kind of crisis, where you’ve got to put everything into a big hat and end up boiling the ocean. We are not interested in that. What I think we have is a series of improvements and ideas.”

Carnegie-Brown is also reported to have told Reuters that “Lloyd’s is looking at all aspects of the business, cost structure, technology, its role as a marketplace and a regulator, and how it mutualises risk. Recommendations from an annual strategy day in June were presented to the board and a number of workstreams are being set up. I do not see Lloyd’s relinquishing its regulatory duties but there are whole aspects of regulation that we need to look at to make sure that we are not duplicating what is already done by other regulators.”

The Joint Rig Committee (JRC) has issued an open letter to Marine Warranty Surveyors encouraging them to join the newly formed Society of Offshore Marine Warranty Surveyors (SOMWS). JRC has been working for a number of years to develop a more standardised approach for insurers to appoint Marine Warranty Surveyors (MWS) which has led to the development and formation of the Society of Offshore Marine Warranty Surveyors (SOMWS). SOMWS has been established as a professional body through which individual MWS can be certified and to raise the profile of marine warranty surveying in the wider upstream oil and gas industry.

A professional qualification will give confidence to Energy market underwriters appointing MWS on upstream construction projects. SOMWS will act as a professional body for MWS, membership of which will allow Insurers to efficiently pre-qualify MWS that may be required for a particular project. It will also allow the validation of insurers’ appointment of MWS with the necessary capabilities andexperience. The initial focus of SOMWS is on upstream construction projects but this is expected to be expanded to include MODU marine operations, renewables and project cargo. In order to achieve certified status, individual MWS need to meet the requirements of the formal SOMWS admission process.

GCube, a provider of renewable energy insurance services, has launched a new cyber risk policy. The product is designed to cover the specific cyber exposures of renewable energy asset owners. Unlike more conventional cyber insurance products in the market, which focus on data breaches relating to personal information, the company says, the solution covers owners and operators in any circumstance where the ability to generate power – and the associated revenue – is impacted by a cyberattack on proprietary or third-party IT or OT (operational technology) systems.

In practice, this means it provides cover for loss of revenue – and incidental expenses – incurred in a range of circumstances, including non-damage events; digital asset destruction, including loss of use or theft of import SCADA data; reputational harm; and cyber extortion. Cover can also be extended to include a cyberattack on assets not actually owned by the insured, such as damage to a third-party substation or transmission infrastructure that prevents the export of power.

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If you require any further information, please contact John Cooper, Managing Director on +44 (0)20 7466 6510 or email john_cooper@jltgroup.com.

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