The underwriter of a new onshore energy operation which opened in Houston this month says the market is becoming more competitive for underwriters who are keen to remain in the sector but reduce cat exposure.

Helen Tarr, Energy underwriter for Lloyd’s insurance group Chaucer has been appointed to head the new operation which has been formed with broker Global Special Risks and based in GSR’s offices. Ms Tarr said the market is becoming more competitive for underwriters who are keen to remain in the sector but reduce cat exposure.

She says the aim for Chaucer and GSR is to build on a product that the two participated on for one client and on renewal saw Chaucer assume 100% of the risk.

“We are not writing windstorm risk,” she explains. “This was a programme were worked on for one client and when it came to be renewal it was decided that we needed to expand our participation on the product and seek to offer it to other markets. To do so we needed to have an underwriter in Houston.”

Ms Tarr adds Houston remains a booming energy risk sector.

“It an important hub for the energy market and one which has seen greater levels of underwriters and brokers establishing a presence, she explains. “The risks underwritten are those that would not traditionally find their way to the London and Lloyd’s markets and we felt that you need to have an underwriting capability in the market to work with the clients.”

She admits the on shore energy market remains competitive given that the inland nature of heavy oil and gas reserves removes the wind catastrophe risk.

“Having said that we are looking at risks in various geographic regions and as such they come with their own particular risk Factors which need to be underwritten. There is though significant competition for the business from the domestic markets which see the class as an attractive risk.”

Chaucer’s move was followed by Bermudan based Torus last week which has made two senior appointments in order to open its facility to underwrite in the on-shore sector.

Following the recent appointment of Senior Underwriter, Debbie Landes, in Houston, Torus announced that Senior Underwriter, Chris Johnson, has also joined the company’s rapidly expanding Global Onshore Energy team, led by Philip Sexton.

Mr Johnson, will be based in Torus’ London office,  and Mr Sexton said the move was designed to supplement the Houston operation and provide a global coverage.

“We have worked hard to build Torus’ global onshore energy capabilities and establish our services in London. With the team now in London and Houston we are truly expanding our reach into energy markets worldwide,” he added.