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The Insurer news staff had no role in the production of this content. This content is created by the brand marketing unit of The Insurer. Jonathan Davey, global head of marine reinsurance at Axis Re, discusses the key concerns for marine and energy reinsurers as well as what the future holds. With hurricane season at a close, is Gulf of Mexico (GOM) wind exposure still a significant concern for marine and energy reinsurers? GOM wind remains a key concern for energy reinsurers, requiring careful monitoring, although over time original insureds have selectively retained higher levels of GOM-specific exposure. Hurricane loss activity since the devastating 2005 season suggests that the energy asset base is more robust than at the time of Katrina-Rita-Wilma. However, marine and energy reinsurers must consider these exposures within a broader portfolio – U.S. and Caribbean yacht exposure, brown water hull, ports and terminals infrastructure and inland marine risks all contribute to a complex mix with variable outcomes in a loss scenario. What about the global political landscape – is that a concern of yours? Armed conflict, tariffs and broader geopolitical challenges have disrupted global trade flows, forcing shipping routes to take alternative paths and creating longer, more fragile supply chains. These dynamics increase loss potential and can be expected to drive up claims costs when losses occur. We remain cognisant of these stressors on frequency and severity. That said, the marine market has a long history of innovation to support clients and is well positioned to adapt to a changing world. A great example of this are the war-risk products launched to support the Black Sea Grain Initiative, which was a testament to the agility of marine underwriters. Looking into the future, what future underwriting considerations will affect marine and energy reinsurers? Many energy insurers are broadening their offering beyond traditional upstream risks to provide a comprehensive natural resources product suite – including power, renewables, mid- and downstream risks. As reinsurers look to offer treaty solutions that mirror these products, it will be increasingly important to manage clashing exposure between cedants, given the extensive syndication of large, complex risks. The early 2010s saw a significant collective effort from the market to improve monitoring and reporting of energy platform exposures, which is now standard practice. We can learn from past successes to monitor and control accumulation effectively across multiple products. How will Axis Re approach the marine and energy market in 2026? There are several large, complex and yet-to-be-finalised claims weighing on the specialty reinsurance sector (Russian aviation leasing, MV Dali, emerging marine war claims and a run of large downstream energy losses), coupled with reported rate pressure in many original insurance lines. In a challenging environment, the value of reliable partnerships from robust capital is clear. Axis Re will stand ready to provide sustainable and relevant solutions to both our existing cedants and new partners, supported by our in-depth product knowledge and highly experienced underwriting team.
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