NU Online News Service, April 7, 1:08 p.m. EDT
An insurance consortium for energy coverage introduced in light of the Deepwater Horizon event may not be a large source of coverage for major oil companies, which are likely to continue self insuring and purchasing only modest amounts of coverage, according to a Moody's analyst.
The reason, James Eck, vice president-senior credit officer with Moody's writes in Moody's Reinsurance Monitor, is that "there is not enough insurance capacity available to make a meaningful difference to [oil companies] based on their capitalization and core earnings power."
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