Oil rig insurance premiums rise 40 percent

[maxthetrade]

NEW YORK, May 26 (Reuters) - W.R. Berkley Corp, (WRB.N) a property insurer, is boosting premiums on deep water oil rig insurance by 40 percent after a massive spill at the Transocean (RIG.N) drilling rig in the Gulf of Mexico, the insurer's chief operating officer said on Tuesday.

 

Berkley was an insurer of the Transocean rig, and has paid out $25 million on it, but after reinsurance, its net payout is $5 million.

 

W.R. Berkley believes it was charging the right price for deep water oil rig insurance, but is happier to charge higher prices now that it better understands everything that could go wrong on a rig, said W. Robert Berkley in a meeting with reporters.

 

"It's been a learning experience," Berkley said.

 

 

[rtgross]

 

BP spill losses hit reinsurers; premiums soar

 

LONDON, June 3 (Reuters) - Reinsures have bumped up prices for offshore energy-related insurance premiums by 50 percent following insurance industry losses of up to $3.5 billion from the BP plc (BP.L) oil spill in the Gulf of Mexico, Moody's Investor Service said in a report on Thursday.

 

http://www.reuters.com/article/idUSLDE6520QU20100603