The number of insurers offering environmental insurance continued to grow in 2009, leading to a significant increase—at least 25 percent—in capacity in the environmental insurance marketplace. More insurers are offering combined environmental and general liability products than ever before. Rates continued to soften through the fourth quarter of 2009 for most other environmental insurance products, although slightly less than in the first half of 2009 (with exceptions for products linked to financial assurance requirements).

Looking Ahead

Environmental insurers continue to monitor developments in the regulatory and legal landscape, particularly regarding climate change and financial assurance.  The increase in global environmental regulations continues to pose challenges for multinational firms, particularly those that have a centralized environmental risk management group. Insureds should look for environmental brokers that have the benefit of a local presence in each of the regions where they conduct operations.