Global energy and power insurance premiums worldwide are likely to increase to a value of approximately $24.59 billion under a low oil price scenario segmenting between around $14.14 billion in energy insurance premiums and around $10.45 billion in power insurance premiums in 2018.
A new research from Finaccord, a market research, publishing and consulting financial services company which made the forecast also disclosed that Canada was second largest energy and power insurance market in the world with US$1.77 billion in premiums in 2014.
Finaccord’s study – “Global Energy and Power Insurance: A Worldwide Review” found that energy and power insurance premiums worldwide, including business handled by captive and mutual insurers, amounted to approximately $23.56 billion in 2014.
This increased from about $21.48 billion in 2010 – equivalent to a compound annual growth rate in nominal terms of 2.3 per cent.
In 2014, this total market segmented between approximately $14.16 billion from energy insurance premiums and about $9.40 billion from power insurance premiums, with the United States “by far the largest market at around $8.38 billion, followed by Canada at $1.77 billion and China at $1.45 billion,” Finaccord said in a statement.
With regards to energy insurance premiums, in particular, these broke down between around $7.15 billion from upstream insurance, around $2.17 billion from midstream insurance and around $4.84 billion from downstream insurance.