Increasing need for energy transition strategies forms key theme of Willis Towers Watson’s annual Energy Market Review
AMSTERDAM, April 12, 2021 – Climate change and the resulting energy transition continues to transform the energy industry risk landscape, and remains the dominant issue facing the Energy sector (olie & gas, power & utilities en (renewable) energy), according to Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking, and solutions company, at the launch of its annual Energy Market Review.
The report outlines how the global energy system is currently being overhauled, with the threat of flows of fossil fuels from fields around the world, through pipelines and tankers to refineries near to consuming markets, disappearing or changing radically to more renewable energies such as wind, wave and solar power.
Conditions in almost every arena of the Energy insurance markets continue to harden, although rate increases are expected to be more moderate for some risks. The Report outlines the following:
“The issue of climate risk that continues to dominate the sector and we are increasingly seeing an acceleration of the energy transition that will have a significant impact on the future shape of the industry.”
Paul Bruidegom,
Practice Leader Natural Resources Willis Towers Watson Nederland
Paul Bruidegom, Practice Leader Natural Resources Willis Towers Watson Netherlands, said: “In the past 12 months we have seen some quite extraordinary developments around oil price, demand destruction and an even sharper focus on environmental, social and governance issues and so there is no denying there are increasingly wider challenges facing the energy industry. However, it is the issue of climate risk that continues to dominate the sector and we are increasingly seeing an acceleration of the energy transition that will have a significant impact on the future shape of the industry. In short, today’s energy businesses are needing to consider how they establish robust transition plans to ensure a sustainable future. At Willis Towers Watson, we continue to work with our clients to help them achieve these new objectives as rapidly as possible. We do this from a risk advisory, analytical and engineering stand point, which is designed to help our clients accelerate their climate reduction targets and in doing so, enhance their profile within their external stakeholder community.”
The 2021 Energy Market Review also includes contributions from clients, carriers and key energy stakeholders and highlights the importance of using risk quantifications and analytics to conduct energy transition initiatives. A full copy of the report can be found at https://www.willistowerswatson.com/en-NL/Insights/2021/04/energy-market-review-2021