All businesses will increase liability demands post-BP oil spill
Catlin CEO Stephen Catlin says BP's Deepwater Horizon oil leak in the Gulf of Mexico will lead to higher demand from big companies in many industries for additional liability insurance, Reuters reports.
"The market has yet to factor in that we have got something in the market today that is life changing. It is not just energy liability underwriting that will be affected, it's all liability underwriting," he said.
Catlin said some of the biggest corporate clients would now be looking for at least $10bn of liability exposure, nearly a tenfold increase on average limits, which would affect capacity and pricing.
Insurers would need to rethink policy structures in the energy and other sectors in order to deliver products they can honour, said Catlin.
