Clyde & Co – Loss Load: Implications for claims negotiations

• FOIL
• FOIL Ireland
• FOIL select
• London FOIL

Authors - Angela Flaherty and Rob King

Compared with many other insurance lines, energy insurance claims tend to be low frequency and high severity. When an insured has suffered a loss, its loss record will often impact upon the premium charged by underwriters upon renewal. This practice is complicated by the fact that energy insurance claims often take several months or sometimes years to resolve. Therefore, at the time that a particular policy is renewed or extended, it is not uncommon for there to be a lack of clarity regarding the quantum of a particular loss, or perhaps even whether the loss will ultimately be recoverable under the policy at all.