Oil Insurance Limited (OIL) Announces Intention to Eliminate Offshore Gulf of Mexico Designated Named Windstorm Coverage in 2018

Energy Press Releases Friday February 10, 2017 15:06
HAMILTON, Bermuda--10 Feb--PRNewswire/InfoQuest

OIL announced to its shareholders on February 7, 2017 that commencing on January 1, 2018 the company will no longer offer Offshore Gulf of Mexico Designated Named Windstorm (DNW) coverage. It will continue to offer windstorm coverage for onshore areas in the Gulf of Mexico, and in all other onshore and offshore areas of the Atlantic Basin and the world.

Bertil C. Olsson, President & CEO, commented that "For the past few years, membership participation in the Offshore DNW pool has appreciably declined as a result of decreased demand for this product.   Increasingly, many companies have come to the conclusion that retaining this risk on their balance sheet or selectively insuring individual assets in the commercial market is a better alternative to insuring their entire portfolio of Offshore Gulf of Mexico named windstorm exposed assets with OIL. As a result, OIL has determined that this geographic risk class no longer fits well within a mutual framework."

George F. Hutchings, Senior Vice President & COO, further added that "OIL considered several product alternatives to the existing Offshore GOM windstorm product and conducted a membership survey to seek the memberships' input. Two thirds of the membership didn't believe that Offshore GOM windstorm risk should be offered by OIL and a significant portion of the membership didn't believe that this risk should be mutualized across all members as one of the options to maintain this coverage. In light of the fact that alternatives had either limited value in the context of the mutual or were expensive, the survey feedback did not favor continued underwriting of this risk and membership demand for the product is low, the decision was taken to discontinue the Offshore GOM DNW coverage."

For more information about OIL's property coverages and related value go to https://www.oil.bm/ .

Oil Insurance Limited (OIL) insures over $3.0 trillion of global energy assets for more than fifty members with property limits up to $400 million totaling more than $19 billion in total A- rated property capacity. Members are medium to large sized public and private energy companies with at least $1 billion in physical property assets and an investment grade rating or equivalent. Products offered include Property (Physical Damage), Windstorm, Non Gradual Pollution, Control of Well, Terrorism, Cyber, Construction and Cargo. The industry sectors that OIL protects include Offshore and Onshore Exploration & Production, Refining and Marketing, Petrochemicals, Mining, Pipelines, Electric Utilities and other related energy business sectors.

Source: Oil Insurance Limited

Latest Press Release

PTTEP completes the acquisition of Shells stake in Bongkot field, Ready for the bidding to maintain energy security for Thailand

- Strong determination to continue operatorship in Bongkot field to maintain energy security for Thailand PTT Exploration and Production Public Company Limited (PTTEP) announced the acquisition completion of 22.2222% stake in the Bongkot field from...

BGRIM and Xuan Cau ink JV pact for ASEAN#s largest solar power plant

The plan to set up the largest solar power house in Southeast Asia has advanced towards realisation with two sponsors - Thailand's B.Grimm Power and Xuan Cau of Vietnam - signed a partnership accord. The landmark agreement for the 420-megawatt facility...

JA Solar Named Top Performer by DNV GL for the Third Time

JA Solar Holdings Co., Ltd. (Nasdaq: JASO), a world leading manufacturer of high-performance solar power products, today announced that it was awarded the "2018 Top Performer" by DNV GL, a world renowned independent energy experts and certification...

GCL New Energy Signs PPA for 110MW Solar Project In Colorado

GCL New Energy, Inc., a subsidiary of the world's leading clean energy conglomerate GCL Group, has signed a long-term power purchase agreement (PPA) with Intermountain Rural Electric Association (IREA), a local power company, for its Pioneer 110MW...

New PHNIX Water Source Heat Pump Water Heater Will Soon Be Launched in Southeast Asia

A few months ago, PHNIX released a series of new heat pump water heaters during trade shows in India and Vietnam. At present, PHNIX, a leading heat pump manufacturer in China, will release a new series of water source heat pumps, specifically designed...

Related Topics