WTW Energy Market Review 2023
Supply chain disruption is inflating insured values and lengthening restoration periods, due to specialized equipment requiring lead times often exceeding a year. It’s also significantly increasing the cost of materials and labor, thereby driving up the values that energy companies should report at renewal.
If an energy company faces a business interruption event, it will want to avoid further pain in its recovery. Today, this means ensuring that policy terms and conditions reflect longer timeframes and increased costs. And when insurers are regularly suggesting buyers increase their stated property values for building and equipment values by 15%-20% (compared to the typical 1%-5% year-over-year increases the sector has experienced historically) the hunt is on for better value.
But in the pursuit of the precise cover required at an appropriate price, energy companies can also uncover further strategic advantages and ways of upping their return on capital. In this insight, we look at how to assess insured values to identify optimization opportunities in the current market conditions.
To read more, please download the full article, below.
| Title | File Type | File Size |
|---|---|---|
| Reviewing insured values: How to maximize return on capital | 1.5 MB |
WTW offers insurance-related services through its appropriately licensed and authorised companies in each country in which WTW operates. For further authorisation and regulatory details about our WTW legal entities, operating in your country, please refer to our WTW website. It is a regulatory requirement for us to consider our local licensing requirements.
