COVID 19 – the effect on the power sector
Produced by our Natural Resources team in London with contributions from colleagues all over the world, Willis Towers Watson’s Power Market Review 2020 has been published at a time when Power insurance markets have continued to harden significantly.
The new environment has no rule book to play by but requires immediate and effective decisions
The COVID-19 pandemic has also introduced unprecedented challenges for the global power sector across its core commercial, technical, operational and financial functions. The new environment has no rule book to play by but requires immediate and effective decisions to ensure that employee and plant safety are not compromised while managing the many variables required to maintain a viable long-term business.
This year, our leading article summarises the impact to date on both the power sector and its respective insurance markets. This is clearly an ongoing situation that will be with us for the foreseeable future so we will continue to keep our readers up to date with the latest developments as the rest of 2020 unfolds.
The remaining sections of the review cover the following:
Margaret-Ann Splawn, who is a climate policy finance and investment consultant, sets the scene with a detailed analysis of how ESG is impacting the power industry, while our experts from the Willis Research Network then show how power industry risk managers have a vital strategic role to play in quantifying climate change risk, as well as improving their company’s ESG footprint.
Part three of our Review focuses on a variety of risk management issues, including the vital role that analytics can play in determining optimal risk management strategies in a hardening market, as well as articles on managing your geopolitical and cyber risks. We also take a look at the risks emerging from digitisation in the industry and offer a fresh insight as to the value of enhanced Claims Protocols.
In part four of the Review, we describe major Property and Liability insurance market developments in both London and North America and provide a round-up of regional developments from our Power specialists in Beijing, Dubai, Latin America and Singapore. The one common denominator for buyers is simple: the hard market has truly arrived; the placing process will take longer than you might be used to; so be prepared and work with us to derive optimal results for your organisation.
We hope you enjoy reading the Review, and as ever would welcome any feedback that you may have.
