Global Property Insurance Market in the Oil and Gas Sector 2016-2020

Global outlook of the property insurance in oil and gas market

Technavio’s market research analysts predict the global property insurance in oil and gas market to grow steadily during the forecast period and post a CAGR of more than 3% by 2020. This industry research report identifies the need for hedging expensive oil and gas assets to be one of the major factors that will have a positive impact on the growth of the industrial property insurance market in the coming years. Due to the highly specialized nature of operations in the oil and gas industry, the machinery associated is extremely expensive. Since these expensive machineries are used in highly hazardous operations, oil and gas companies find it imperative to buy insurance policies that cover losses. Moreover, the cost of cleanup and debris removal is also high, which will again compel companies to develop risk management strategies and take up property risk insurance covers.

One of the major trends that will gain traction in this market is the emergence of engineering services. Oil and gas operations involve high temperatures, flammable liquids, high-pressure gases, and several other extreme conditions, which create a high probability for fire accidents or explosions. Realizing the value of engineering services in ensuring the success of the overall risk management process, insurance providers have started developing teams of engineers and technically experienced professionals to help them make better-informed underwriting decisions. Since the insurance premium mainly depends on the risks associated with the facilities, oil and gas companies will start focusing on developing and adopting advanced engineering services.

Competitive landscape and key vendors

The market is characterized by the presence of numerous insurance vendors and appears to be highly fragmented. Since all vendors compete to gain a considerable share of the market, the competitive environment among market players is quite intense. Insurance providers offer various property insurance policies that cover almost all the aspects of the oil and gas process cycle from the upstream drilling operations and midstream pipeline operations to the downstream refining operations. Insurance companies are constantly investing in resources to improve their understanding and mitigate the risks associated with the oil and gas operations. Vendors in the market are currently focusing more on improving their engineering services and in improving handling issues pertaining to business interruption claims.

The leading vendors in the market are -

• Allianz
• American International
• Aon
• Marsh
• Willis-Tower Watsons

The other prominent vendors in the market are XL Caitlin, Liberty Mutual, Intact Insurance, Travelers, Cravens Warren, ACE, Empire Company, Jardine Lloyd Thompson, Heirs Insurance Brokers, AON Benfield, Osprey Insurance Brokers, Paragon Insurance, and Starr Tech.

Segmentation by sector and analysis of the property insurance in oil and gas market

• Upstream
• Midstream
• Downstream

According to this market study, the property insurance in the oil and gas market will be dominated by the upstream segment throughout the next four years. This mainly attributes to the increasing number of drilling and exploration operations that have significant risk potential and require extensive risk coverage policies.

Geographical segmentation and analysis of the property insurance in oil and gas market

• Americas
• APAC
• EMEA

This market research and analysis predicts that in terms of geographical regions, the Americas will be the major revenue contributor to the market during the next four years. This region is the forerunner in the development and enforcement of regulations pertaining to property insurance policies. The increased production of crude oil from unconventional oil and gas resources, the shale gas boom in the US, and the constant demand for crude oil from countries such as the US, Canada, and Mexico will drive the growth of this market in the Americas.

Key questions answered in the report include

• What will the property insurance in oil and gas market size and the growth rate be in 2020?
• What are the key factors driving the global property insurance in oil and gas market?
• What are the key market trends impacting the growth of the global property insurance in oil and gas market?
• What are the challenges to market growth?
• Who are the key vendors in the global property insurance in oil and gas market?
• What are the market opportunities and threats faced by the vendors in the global property insurance in oil and gas market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global property insurance in oil and gas market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Global Property Insurance Market 2016-2020
• Global Microinsurance Market 2016-2020
• Global Insurance Brokerage Market 2016-2020

Insurance companies act as partners and help oil and gas companies to meet their operational challenges through exceptional expertise and global insurance abilities. The steep rise in crude oil production coupled with growing deep drilling operations have necessitated the implementation of property insurance among oil and gas companies. The property insurance area in the oil and gas sector is quite dynamic and subject to rapid changes. In the recent years, the constant decline in oil prices has triggered several changes in the energy insurance industry. The drop in oil costs has propelled several energy companies to collaborate and form partnerships. Such consolidation of insured companies has resulted in fewer premiums generation for the insurance providers. There have been several indications by the insurers that dropping oil prices may push many energy companies to change their coverage to renegotiate the costs for managing claims and premiums.

The report, global property insurance market in the oil and gas sector, is part of Technavio’s energy research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as energy storage, power, oil and gas, smart grid, and waste and waste management. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.