Energy market to remain volatile – WTW report

A range of experts contributed to the Review, covering subjects including:

Risk optimization strategies for a potential recession
Maximising return on capital through an assessment of insured values
Understanding supply chain risk
Tackling the “competence barrier”

Part Two of the report examines the current state of energy insurance markets, beginning with a Q&A between Tom Houston, head of upstream at Convex Insurance, Paul Sankey, Convex head of downstream, and WTW’s Richard Burge and Adam Barber-Murray.

Sankey said the war in Ukraine has revealed the energy industry’s integration with the global economy, as exemplified by Europe’s pivot from Russian oil toward imported liquified natural gas.

“In the short term, the world is focusing on energy security, and that shift alone makes the energy industry different, while other factors such as energy sustainability and energy affordability are also going to change it in the long term,” Sankey said. “As economies move away from their dependence on Russian natural resources, I think these changes are inevitable.”