Insurers Flock to Oil Projects Outside the Middle East

AI Summary

Due to escalating conflict in the Middle East, global insurers have shifted focus from the war-torn region to oil and gas projects outside the Middle East. This change follows delays and cost inflation for projects in the region, driving insurance giants to seek opportunities in less risky areas amid persistent uncertainties.

Global insurers had just shaken off the ESG push from earlier this decade when the Middle East conflict upended oil and gas upstream project coverage. The world’s lowest-cost oil and gas producing region became a war zone at the end of February, with war-risk premiums and oil and gas drilling and construction projects facing either delays or significant cost inflation.   Five months of uncertainties about new oil and gas projects in the Middle East have prompted insurance giants to turn to underwriting drilling and project construction…