Aon  |  Energy

The downstream oil and gas sector - encompassing the petrochemical, refining and processing industries - is under pressure. According to the International Energy Agency, the downstream refining sector will see major change over the next five years, as the consequences of excess refining capacity start to impact margins through supply and demand economics. This increasing global demand for refined products, as well as growing regulatory and sustainability constraints, and the capital-intensive operations requiring growing investment for plants and refineries, combine to create a unique risk profile.

Downstream firms’ exposures test the insurance market risk capacity. Combined with a tightening global energy insurance market, an effective insurance program must meet several financial, legal, and operational requirements.

Ultimately, the most important aspect of an insurance policy is the response it provides in the event of an incident. In the present climate where sociocultural values, political pressures and regulatory scrutiny focus on the environment, ensuring that all risks - particularly environmental risks - are fully understood and managed, is critical.


At Aon, we deliver:

We provide transactional and advisory solutions to our clients' business and risk-related needs (Click the hexagons for more information)

  • Risk Modelling & Consulting

  • Insurance & Risk Solutions

  • Claims Advocacy


  • Benchmarking

  • Transaction Services

  • Human Capital

Risk Modelling & Consulting

Aon’s risk consulting and actuarial teams have developed a three-step process to enable energy firms to make informed decisions about risk management. First, analysis is undertaken to identify the firm’s tolerance to financial shock. These insights are then considered against strategic objectives to determine a qualified risk appetite. Risk appetite is then modelled against loss and premium data to determine the risk profile. These data-driven insights enable us to design an insurance programme which optimises risk retention relative to commercial risk transfer options and alternative risk solutions; for example, self-insurance, captive solutions and/or mutualisation.