• Oil & Gas,Power Utilities,Pipeline
The Big Insurance Break You’ve Been Seeking
Talk to your reinsurer about premium reductions.
- Problem: Offsetting costs of geospatial analytics.
- Solution: Talk with your reinsurer about premium reduction incentives.
- Benefit: Affordable advanced monitoring.
We recently spoke with senior executives at several leading reinsurance companies. From these conversations, we came away with three key points:
- All indicated a new awareness of what is possible with geospatial analytics.
- All said that reinsurers would offer premium reductions to oil & gas, pipeline, and electric & gas utility customers employing proven and effective geospatial analytics to avoid risks that result in insurance claims.
- Many indicated that customers have not yet taken advantage of these incentives.
Is your company discussing this financial incentive with its reinsurers?
An oft-repeated mantra here at Satelytics is that we will never work for the regulator. Likewise, we don’t work for insurance companies. We only work for industry because we never want our customers to feel they must sleep with one eye open. But, as advocates for our customers, we will find every cost-saving measure possible to help them adopt geospatial analytics.
The reinsurance executives with whom we spoke agreed that the single largest source of claims submitted to them is the “produced water leak/spill” category related to oil & gas operations. One of our most ambitious customers is currently using Satelytics to monitor their North Dakota pipeline assets four times per week, looking for signs of pipeline leaks over nearly 6,000 miles of pipeline. You can bet that they are offsetting the cost of Satelytics with insurance premium breaks.
Video demonstration of Satelytics' liquid leak detection.
For many energy companies with assets spread over vast geographies and those encountering myriad risks, it may be worth a conversation with your reinsurer to explore reduced premiums tied to use of advanced risk-avoidance technology like Satelytics. Let us know if we can assist in that discussion!