There are two overhangs threatening
future profitability for upstream insurance
capital. The first is the unprecedented
sheer mass of capacity and variety
of operations offering this capacity
abundance which is now over-serving
the declining insurance needs of the oil
and gas industry. To date there has
been no retreat from the markets in
general, which are willing to compete
hard. However, the second threat is
the volume of outstanding major losses
from pre 2016 awaiting clarification as to
their settlement potential. The most high
profile is a West African FPSO that might
need to be taken off station and trigger a
massive Loss of Production claim.