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Market Chatter: Insurers Slash Upstream Energy Premiums Amid Rush for Market Share

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Major insurers have sharply cut premiums for upstream oil and gas insurance outside the Middle East, with some accepting rates below break-even as they compete for business and anticipate stronger exploration activity beyond the region, the Financial Times reported on Wednesday.

Brokers reportedly said premiums have fallen about 25% since the start of the year, while some policies have been discounted by as much as 50%.

The price cuts come despite heightened geopolitical risks in the Middle East, where some operators have shifted to separate war-risk cover.

Insurers are betting future growth in offshore projects and fossil fuel investment will offset near-term underwriting losses amid intense competition and excess market capacity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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