The oil and gas industry is recovering from a period of weak prices, enforced capital discipline, portfolio realignments and productivity efficiencies according to analysis in PwC’s Oil and Gas Trends 2018-19 report.
Upstream, midstream and downstream energy operations in the oil and gas industry carry obvious pollution exposures and present significant risks to the surrounding environment.
The latest Renewables Global Status Report notes that renewable power accounted for 70% of net additions to global power generating capacity in 2017 with new solar photovoltaic generating capacity exceeding that of coal, natural gas and nuclear power combined.
Whilst intended to provide a sustainable and positive outcome for the environment, sustainable energy sources carry their own risks and those operating in this sphere should be mindful of the potential negative localised impacts these could have in the event of an incident.
WHAT WE DO
In conjunction with our energy division, our environmental team are well placed to secure coverage for all types of oil and gas operations, with some of the strongest specialist insurer relationships in the market further supported by our in-house engineering and claims divisions.
Due to the complexities in cover - and variations in the type of operations - we would advise any oil or gas business seeking environmental coverage to contact a member of our team directly to discuss their requirements further.
JLT provides far-reaching solutions for renewable energy operators of solar, onshore and offshore wind farms and geothermal, hydropower, biomass and agricultural plants as well as producers of biofuels and energy from waste.
Coverage is available for both the construction of these plants and ongoing operations.
Alongside our industry practice group specialism, we have tried and tested solutions across the energy sector to deliver full programmes meeting regulatory requirements, alongside provision for any potential adverse reputational impact from pollution events.
Companies see environmental exposures as one of their biggest emerging risks and our global team have the underwriting, engineering, consulting, claims and wordings expertise to provide market leading advice.
This expertise has resulted in a 200% increase in the level of environmental placement in 2017-2018. This has been matched by a doubling in size of the environmental specialist team, which has access to GBP 400 million of environmental capacity in Lloyds and London markets.
Our specialist knowledge of key industry areas is complimented by strong and diverse relationships across the specialty insurance market and access to traditional and emerging markets through the JLT International Network.
We work closely with clients to structure a policy that mirrors their risk profile and transfers the appropriate level of risk to the right insurer.
Additional services include:
- Programme gap analysis - identifying coverage gaps in existing programmes, discussing how these could impact a business and the extent to which they can be covered
- Global programme advice - including where legal and regulatory regimes may require local policies or heightened environmental due diligence
- Risk solutions - through our engineering team, we are able to provide fee-based surveys and advice to support clients in reducing programme premiums
- Claims liaison and support - our claims advocacy team have experience across a number of complex environmental claims, ensuring the best interests of our clients are represented.