Power Market Review June 2021

Table of contents

Introduction

Market Capacity Figures

The figures quoted in this Review are obtained from individual insurers as part of an annual review conducted every year. They are solicited from the insurance markets on the basis of securing their maximum theoretical capacity in US$ for any one risk. Although of course this capacity is offered to all buyers and their brokers, the individual capacity figures for each insurer provided to us are confidential and remain the intellectual property of Willis Towers Watson.

Willis Towers Watson Energy Loss Database

All loss figures quoted in Part Three of the Review are from our Willis Energy Loss Database. We obtain loss figures for this database from a variety of market sources (including a range of loss adjusters), but we are unable to obtain final adjusted claims figures due to client confidentiality. The figures we therefore receive from our sources include both insured and uninsured losses.

Style

Our Review uses a mixture of American and English spelling, depending on the nationality of the author concerned. We have used capital letters to describe various classes of insurance products and markets, but otherwise we have used lower case to describe various parts of the energy industry itself.

Abbreviations

The following abbreviations have been used throughout this Review:

BI Business Interruption

CCUS Carbon, Capture, Utilisation and Storage

ESG Environmental Social Governance

Nat Cat Natural Catastrophe

O&M Operations and Maintenance

OEM Original Equipment Manufacturer

PD Physical Damage

PowerGen Power Generation

PPA Power Purchase Agreement