The cost of insuring oil projects in the Gulf region has decreased by as much as 30%, Emirates Business 24/7 has reported.
“Oil companies are witnessing a change in cost of insurance ranging between 10 per cent and 30 per cent in the past 24 months. The cost of insurance varies with the nature of the project. On an average, the insurance costs have declined by 20 per cent,” James R Pierce Jr, chairman (Energy Practice) with London-based insurance broker and risk advisor Marsh, told Emirates Business.
There is more capital [with insurance companies] as of now as compared to demand,” he added.
A number of reasons can be attributed to the changing costs, with some analysts pointing to the companies attempting to save insurance costs due to the economic crisis, while other believe there is an increasing tendency to resort to captive insurance.
