Marsh’s Power Market Update
Rates for power risks continued to soften globally for the first two quarters of 2017, and a sixth year of four straight quarters of rate reductions seemed likely – until the natural catastrophes of the third quarter. Now, moving into the second half of 2018 and after the effects of the storms have settled, rates have equalized and there are no indications that insurers are set to reduce capacity for power risks this year.
Marsh’s latest Power Market Update analyses current global insurance market conditions for power generation risks. It provides insight into changes and developments within the insurance marketplace as well as in-depth commentary into domestic market conditions and trends for the industry across 10 regions – Africa, Asia, Australia, Canada, Continental Europe, Latin America, Middle East and North Africa, New Zealand, United Kingdom, and the United States.
Key highlights from the report include:
- Capacity remains abundant with an estimated US$4.25 billion of global capacity available.
- Despite the insurance marketplace’s initial reaction to the 2017 Atlantic hurricane season, significant rate increases have been avoided in the first half of 2018.
Regions and insurance companies alike are seeking ways to reduce their carbon footprint, with many attempting to balance existing coal, and coal fired generation portfolios with renewable energy investments.