Energy companies form excess insurer

International energy companies have joined together to form an excess mutual insurer offering property and catastrophe business interruption coverage. Twelve Members of Oil Insurance Ltd. and Oil Casualty Insurance Ltd. have established sEnergy Insurance Ltd., and completed initial capitalization of the Bermuda-based insurer. Policies have already been issued as of May 1.
Among the members involved are two Canadian companies, Petr-Canada and NOVA Chemicals Corp.
“The energy industry has been the pioneer in providing long-term mutual solutions for its insurance needs,” says sEnergy president Jack L. Wesley.
Energy companies have been amongst those hardest hit following the September 11 terrorist attacks, many in the commercial insurance market have noted. Some commercial insurers have viewed energy companies as high-risk potential targets for terrorism attacks and have priced this risk on that basis.
Energy companies have a long history of forming mutual insurance solutions, such as Oil Insurance And Oil Casualty, whose products sEnergy will complement, notes Wesley.
The coverage offers $200 million in excess of $250 million for property damage and excess business interruption coverage above $50 million.