Scope of the Study
The oil & gas industry consists of a series of procedures, chemical reactions and harsh & difficult working conditions that tend to increase the risk to cost-intensive property and environment. Thus, the industry needs to be insured to cover a certain proportion of the liability in case of any accidents. Property insurance is a policy that provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft.
The market study is being classified by Type (Personal Property Insurance and Commercial Property Insurance), by Application (Upstream, Midstream and Downstream) and major geographies with country level break-up. According to AMA, the Global Property Insurance for Oil & Gas Sector market is expected to see growth rate of 3.34%
AXA SA (France), Chubb (United States), Tokio Marine HCC (United States), Liberty Mutual Insurance Company (United States), Allianz (Germany), American International Group, Inc. (United States), Berkshire Hathaway, Inc. (United States), Intact Financial Corporation (Canada), The Travelers Indemnity Company (United States), Cravens Warren Commercial Insurance (United States) and Munich RE (Germany) are some of the key players profiled in the study.
The Players having a strong hold in the market are Allianz, Berkshire Hathway, American International Group, Liberty Mutual. Research Analyst at AMA predicts that United States Players will contribute to the maximum growth of Global Property Insurance for Oil & Gas Sector market throughout the predicted period.
AdvanceMarketAnalytics has segmented the market of Global Property Insurance for Oil & Gas Sector market by Type, Application and Region. On the basis of Type, Commercial Property Insurance are dominating the market in the year 2019 where as Personal Property Insurance stood as second largest market share.
On the basis of application, Upstream segment is dominating the market in the year 2019 where as Downstream segment stood as second largest market.
On the basis of geography, the market of Property 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). North America region held largest market share in the year 2019. Europe on the other hand stood as second largest market due to the presence of key companies into the region and high technological advancement. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
- 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. Property insurance provides damage and rebuilds claims regarding property damage costs and normal maintenance/scheduled turnaround/betterment costs. The growing demand for property insurance in the oil and gas sector has driven market growth.
- 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 supplierís or customerís premises.
- An increase in deductible limits by oil and gas companiesí 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.
- Declining Oil & Gas Sector Due to Shortage of Current Oil & Gas Resources.
- Business Interruption claims continue to increase relative to property damage losses which are more cost-effective in current market conditions. As a result, oil and gas insurers continue to see higher value business interruption claims, which are typically more complex to handle and by their nature can sometimes take several years to settle
Market Leaders and their expansionary development strategies
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
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
Analyst CommentAlthough 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.
Key Target AudienceProperty Insurance Vendors, New Entrants/Investors, Analysts and Strategic Business Planners and Providers, Venture Capitalists and Private Equity Firms and Government Regulatory and Research Organizations
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Data related to EXIM [Export- Import], production & consumption by country or regional level break-up can be provided based on client request**
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