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Explore the challenges and opportunities in the energy insurance sector with a focus on stable profit, long-term uncertainty, and capital management. Delve into the Gulf of Mexico Blowout case study, industry statistics, and Lloyd’s market insights. Understand the fundamental restructuring needed for a sustainable and profitable business model in the current environment.
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Energy Insurance The Road Ahead Dominick Hoare
The Loss/Profit Equation • Inherent Business Dilemma • Demands of Capital • Stable Profit Environment • Sustainable Business Concept
Current Environment • Volatility • Premium Increases • Severe Loss Frequency • Long Term Uncertainty
Lloyd’s Energy Statistics Offshore Physical Damage - Incurred Loss Ratio
Lloyd’s Energy Statistics Control of Well - Incurred Loss Ratio
Lloyd’s Energy Statistics Onshore Physical Damage - Incurred Loss Ratio
Lloyd’s Energy Statistics Energy Liability - Incurred Loss Ratio
Lloyd’s Energy Statistics All Classes - Incurred Loss Ratio
Equity Markets 9/11 P36 - March Toulouse - September
Situation • Capital Intolerance • Flawed Business Model • Short Term Solutions vs. Long Term Business
Solution • Mutual and Constructive • Reduce Volatility • Renewed Confidence • Stable Capital
Fundamental Restructuring of Business • Return on Capital • Higher and Consistent Premium Levels • Transparent Risk Transfer
Insured's Charter • Higher Quality Product • New Standard Levels • Commitment and Continuity
Lloyd’s • Flexible and Innovative Product • Expertise and Professionalism • Unique Talent Pool
Lloyd’s • Chairman’s Strategy Group/Franchise Concept • Proactive and Supportive • Entrepreneurial Spirit • Strong Corporate Governance
Lloyd’s • 9/11 • Trading Continuity • Funding Obligations • 2000 Gross Income – £ 10.2bn • 2001 Gross Income – £ 11.6bn • 2002 Gross Income – £ 12.8bn
Regulatory Environment • Risk Focused Management • LMP Reforms • Product Centered • Market Leadership from Lloyd’s
Re-Definition of Insurance Business Model • Structural Change – Mutually Driven • Product of Highest Quality and Integrity • Sustainable and Profitable • Is Failure an Option?
Energy Insurance The Road Ahead Dominick Hoare