On Bauer Business Focus — A conversation on how the 2012 hurricane season could impact the offshore industry with Andrew Schneider, business reporter for KUHF 88.7 FM.
The first day of June marked the beginning of the 2012 hurricane season with a forecast of 11 named storms, 6 hurricanes and 2 major hurricanes.
Although this is a below average forecast, the offshore industry, both locally and abroad, should still be on alert, insurance expert Daniel Johnson says.
Johnson, a partner at Sutherland, Asbill & Brennan, stopped by Bauer Business Focus recently to discuss how the hurricane season may impact the offshore industry.
“In 2008 when Hurricane Ike struck, the market experienced a lot of rate pressure due to the losses in that storm,” Johnson said. “Although we haven’t had a big storm like Ike in several years, the insurance markets have suffered losses that affect the offshore industry.”
While hurricanes have remained calm in the U.S. since 2008, other factors play a big role in how the offshore industry is affected.
“We haven’t had a big storm in several years but the global insurance markets have had catastrophic losses during the Thailand floods and the Japanese tsunami. Those losses have contributed to the hardening of some rates along with the BP oil spill and the uncertainty rising out of that is keeping rates propped up if not on the rise even though we haven’t had a hurricane.”
Click here to hear the full interview.