Sandy’s Aftermath: Early Read on Energy Market Impact

Posted by Bobby Bierley, Jr. on November 1, 2012 under Casualty, Energy, Marine, Property, Risk Management | Be the First to Comment

It is still very early in the damage assessment process to have a clear picture of the impact on the marine and energy insurance markets.

It is worth noting that there is not a significant concentration of onshore and offshore energy assets in the path of Hurricane Sandy, unlike what was in the path of Hurricanes Katrina and Rita.  

Clearly there is significant power interruption and possibly refinery related downtime.  

The estimate from Eqecat and informal estimates from around the market put insured losses at $10 billion to $20 billion and economic losses of $30 billion to $50 billion in total.  

For energy specifically, we do not view this as a market changing event at this time. Marine will require a bit more time for assessment.

Co-Authors Spotlight

Bobby Bierley, Jr.

Vice President – Energy & Marine

Bobby Bierley works in all aspects of design, marketing, structure and placement of complex casualty and property programs for large energy and marine accounts. Over Bobby’s career, his technical expertise has been refined by the negotiation and placement of multiple lines of coverage during and post major hurricanes for Gulf Coast energy facilities and the negotiation and placement of several hundred million dollar M&A transactions.

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