Willis Group Holdings has created a new facility designed to provide additional underwriting capacity for the oil and gas industry.
According to Willis, the facility is designed to underwrite a 10% follow line, subject to an overall limit of $250m any one insured, and will be utilized subject to each client’s individual agreement.
Security will be provided by Berkshire Hathaway International Insurance. The facility will be designed so that where called upon by the insured, Berkshire Hathaway will follow, or improve upon, the terms and conditions set by the leading insurers, as well as ‘follow’ claims payments agreed by the leading insurer.
The set-up costs and administrative charges will be borne by Berkshire Hathaway and not by Willis clients, Willis said.
Willis Global Energy CEO Alistair Rivers said that this additional capacity provides substantial and easy access to AA+ rated paper to the market at a time when the need for additional capacity on a range of operating and construction risks has never been greater.