Oil-Pollution Insurance Capacity To Fall After Spill, Brokers Say
NEW YORK (Dow Jones)–The amount of pollution insurance that oil companies will be able to purchase may fall by 15% or more because of the spill in the Gulf of Mexico, brokers who arrange the coverage told a group of U.S. Senators.
At least one major energy liability insurer has already decided to cut back on the amount of coverage it will offer to individual companies by a third, and prices for insurance protection are likley to increase significantly, wrote Lloyd & Partners Ltd., a London broker, in a letter about the availability of insurance in the wake of the April accident.
John Lloyd, the chief executive of the brokerage, predicted “pressure from both sides of the supply-and-demand equation as capacity shrinks and demand for higher limits materializes.”
Dow Jones
5/15/10
Magnolia Tribune
