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Southern storms could further squeeze energy insurance

March 2, 2021

The series of winter storms and deep freeze that hit Texas and other states in mid-February is likely to exacerbate rate hardening and tightening conditions in the energy insurance market, industry experts say.

The power outages and rolling power cuts in Texas disrupted many industries, including energy and power company operations across the state and beyond, reflecting their rising exposures to business interruption, they say.

Potential physical damage and business interruption claims are still under investigation and to be determined, said Robert Albino, a managing director in the energy and power practice of Marsh JLT Specialty in New York.

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