Please rotate your device.

Power Market Review June 2021

Table of contents

Introduction

Part One: Adapting to new realities

A world ready for the energy transition: implications for the global power industry
Clean coal technology: our industry’s contribution to a net zero future
The energy transition: staking your claim on the frontier
Preparing for a new climate: building resilience in the power sector
Microgrids: meeting grid and customer needs in the US
Rolling blackouts in California and Texas: grid resiliency going forward
COVID-19 and civil unrest: the impact on the power industry
South East Asia: meeting the challenge of rising power demand

Part Two: Managing risk through the transition

Your program design: is it keeping your company safe?
CyNat: an industry-focused cyber risk solution for the power sector
Risk engineering: innovation in communication

Part Three: The Power insurance markets in 2021

Zurich’s Fabio Iacono: re-establishing a face-to-face market presence
International Property: still challenging as market hardening persists
North America PowerGen: continued market hardening
International Liability: subtle changes to hardening dynamic
North American Excess Liabilities: a classic hard market
Construction: hardening market dynamic continues
International market roundup: except for China, centralisation continues

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