Posted on 24 Feb 2009
Leading insurance broker and risk advisor, Marsh, today announced the creation of a one-of-a-kind property insurance program that can provide up to $500 million of annual capacity, in the aggregate, for windstorm losses incurred by all participating oil and gas companies operating in the Gulf of Mexico in a given policy year.
Marsh's Cost and Coverage Certainty Program, known as the Triple C Facility, was developed in conjunction with the Berkshire Hathaway Group. The Triple C Facility is designed to provide oil and gas companies operating in the Gulf of Mexico with insurance protection, on a pooled basis, with pricing stability, and for a period of five years. Underwritten by members of the Berkshire Hathaway Group, the program is currently available exclusively through Marsh.
"The series of severe hurricanes that struck the Gulf of Mexico during the past five years have drained insurance capacity and left many energy firms with few, if any, alternatives to obtain the levels of coverage they require at stable prices," said Jim Pierce, chairman of Marsh’s Global Energy Practice. "We believe that the Triple C Facility will address a serious exposure for these businesses in an acutely challenging economic cycle when the effects of a large uninsured loss might be devastating."
The Triple C Facility will offer participating businesses flexibility in coverage design and structure, including a choice of limits of $100 million per occurrence or $50 million per occurrence and a variety of attachment points, ranging from $20 million to $250 million per occurrence.