What is Property & Casualty Insurance for Oil & Gas Sector Market?
The global property & casualty insurance market for oil & gas sector is expected to grow at a moderate pace during the forecast period, according to the AMA study. Rising number of interruptions & casualties in the oil & gas sector is expected to be one of the major factors aiding into the growth for the market. The market was estimated to be around USD 17,371.1 million in 2019. However, the market is expected to witness some decline in the growth for the next few years due to the current pandemic & the recession in oil & gas industry, but it is again expected to rise with a healthy pace after the COVID-19 pandemic is over.
Highlights from Property & Casualty Insurance for Oil & Gas Sector Market Study
Attributes | Details |
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Study Period | 2017-2027 |
Base Year | 2021 |
Unit | Value (USD Million) |
Key Companies Profiled | Allianz (Germany), American International Group, Inc. (United States), Arch Capital Group Ltd (Bermuda), AXA SA (France), Berkshire Hathaway, Inc. (United States), Chubb Limited (United States), Cravens Warren Commercial Insurance (United States), Everest Re Group, Ltd. (Bermuda), Hartford Fire Insurance Company (United States), InSource Insurance Group, LLC (United States), Intact Financial Corporation (Canada), James River Insurance Company (United States), Liberty Mutual Insurance Company (United States), Munich RE (Germany), Starr International Company, Inc. (United States), The Travelers Indemnity Company (United States), Tokio Marine HCC (United States) and Zurich Insurance Group Ltd. (Switzerland) |
The vendors in this market are majorly focusing on providing innovative solutions & services in order to cater to the market's demands to remain competitive in the global market. For instance, in September 2019, American International Group, Inc. announced that as of January 2020 virtually all of its commercial property and casualty insurance policies would begin affirmatively covering or excluding physical and non-physical cyber exposures. Research Analyst at AMA predicts that United States Players will contribute to the maximum growth of Global Property & Casualty Insurance for Oil & Gas Sector market throughout the forecasted period.
Allianz (Germany), American International Group, Inc. (United States), Arch Capital Group Ltd (Bermuda), AXA SA (France), Berkshire Hathaway, Inc. (United States), Chubb Limited (United States), Cravens Warren Commercial Insurance (United States), Everest Re Group, Ltd. (Bermuda), Hartford Fire Insurance Company (United States), InSource Insurance Group, LLC (United States), Intact Financial Corporation (Canada), James River Insurance Company (United States), Liberty Mutual Insurance Company (United States), Munich RE (Germany), Starr International Company, Inc. (United States), The Travelers Indemnity Company (United States), Tokio Marine HCC (United States) and Zurich Insurance Group Ltd. (Switzerland) are some of the key players profiled in the study. Property & Casualty Insurance for Oil & Gas Sector Market Segmentation:
Scope | Sub-Segments |
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Application / End User | Upstream, Midstream and Downstream |
Type | Property Insurance {Personal Property, Commercial Property} and Casualty Insurance |
End Users | Exploration and Production Companies,Drilling Contractors,Oil Field Service Contractors,Oil Lease Operators,Pipeline Operators and Contractors,Plant Maintenance Contractors,Others |
Coverage | Property Insurance {Replacement Cost, Actual Cash Value, Extended Replacement Costs},Casualty Insurance {Workers' Compensation, Automobile Liability, General Liability, Excess and Umbrella Liability} |
On the basis of geography, the market of Property & Casualty Insurance for Oil & Gas Sector has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
The property insurance are now made to compensate an insured for the financial impact of the interruption/interference to that business as a result of physical damage to insured property or other key external events, such as damage at a supplier’s or customer’s premises. Furthermore, the growing use of blockchain in casualty insurance sector and increasing usage of artificial intelligence (AI) sensor technology & cloud technology are some other trends of the market.
Market Growth Drivers:
The increasing number of interruption in the oil and gas industry due to the occurrences such as power shutdown, internal or external interference in operational activities, or other activities reacted to property. The growing demand for property insurance in the oil and gas sector has driven market growth. Furthermore, the rising concerns for accidents caused in the oil & gas sector & increasing regulatory pressure to ensure the employees' safety & security is another major driving factor.
Challenges:
Declining Oil & Gas Sector Due to Shortage of Current Oil & Gas Resources
Restraints:
Short Term Restraint for the Market Due to Shutting Down of Operations & Process of Different Companies Across Different Parts of the World Due to COVID-19 Pandemic
Opportunities:
An increase in deductible limits by oil and gas companies’ in order to save money on premiums will ultimately increase the coverage limit. Also, certain laws provide exemptions from the deduction limit for certain situations and will provide tax saving. This benefit has motivated the oil and gas sector to adopt insurance policies of which property insurance is being demanded.
Market Leaders & Development Strategies
In November 2019, Allianz Group announced that it has partnered with Microsoft to digitally transform the insurance industry wherein Microsoft will partner with Syncier, the B2B2X insurtech founded by Allianz, to offer customized insurance platform solutions and related services
In December 2019, Intact Financial Corporation announced that it has completed the acquisition of The Guarantee Company of North America (The Guarantee) and Frank Cowan Company Limited (Frank Cowan), having received all required regulatory approvals worth USD 1 billion
Stringent Worldwide Government Regulations Regarding Regarding Shutting Down of Operations of Oil & Gas Industry in Order to Ensure Safety of Individuals from COVID-19
Analyst Comment
Although incidents across the oil and gas industry have become less frequent over time, the cost of oil and gas insurance claims continues to rise. Business interruption losses in the oil and gas industry are likely to increase over the next decade unless greater attention is given to how an event could affect supply chains that are more integrated, interdependent, and streamlined. Property insurance tends to cover the environment and property from any accidents and oil & gas organisation activities. This insurance also provides insured coverage a certain proportion of the liability in case of any accidents. As property insurance can provide replacement cost or agreed value in order to help the oil and gas industry get back on track as quickly as possible their demand is anticipated to increase in the oil and gas sector.