Power Utility Insurance Market Update
MUNICH, 07 April 2020
Marx Re has been able to prove its strength in the segment of power-utility insurance and reinsurance market despite the downturn of the economy and a loss-making environment.
The focus of Marx Re remains in the specialization of large property placements, in particularly in the segment of power generation and construction that generated a steep increase in revenues resulting from advisory and transactional services that included transactions of multibillion portfolios of assets into the reinsurance market.
The volume also coming from the growing Renewable Energy portfolio and the award of several construction projects exceeding 2000 MW arising out of wind parks and solar farms across Europe and Latin America.
Not many new elements of insurance have been possible to add to the already rather comprehensive scope of cover that the market was providing in recent years. The current hardening market is evidenced by shortage of capacity in the property and casualty insurance market and the reduced supply is in some cases driving to double digit premium increases and often to a more limited scope of cover. The level of deductibles is increasing in particularly in respect to Business Interruption and coverages are reduced and or limited depending on technology specifications and certain NATCAT exposed regions.
A possible downturn of the economy in 2020 is producing less infrastructure and energy project across Europe and Latin America that is providing the basis of a more aggressive and competitive environment amongst contractors which is further aggravated by the dynamics (anti-cycle) of the insurance market. We understand the challenges of our clients in managing their business and risks and we keep assisting our clients in successfully navigating the current insurance market cycle.
Despite the rather complex trend of the insurance market, we have been able to secure competitive solutions for our clients predominantly with our longstanding business partners that have taken a view to properly manage the insurance cycles in a more reasonable manner against the opportunistic approach of other carriers.
Marx Re is pleased to work with reliable market leaders in these specialized insurance fields and we remain a trusted partner to both, contractors and insurers.
About Marx Re-Insurance
Founded in 2009, Marx Re is a reinsurance and insurance broking company with a growing global network. It has a major focus on asset-based, primarily in property and construction, power generation and renewable energy sourced Europe and Latin America.
For more information visit www.marxre.com