With estimates of investment in the Arctic region likely to reach $100bn over the coming decade, the call for insurance from businesses operating in the area is set to increase.
The importance of the region as a rich mineral reserve and the logistical benefits of its shorter shipping routes have not escaped oil and gas companies and cargo carriers, which want to boost their presence in the area.
RFIB Group natural resources broker Gareth Davies say exploration in the Arctic area is also providing opportunity for insurers at all stages of project development. “The new challenges and risks provided by the Arctic environment are evident at all stages of the life of these projects, from investment stages to construction, operation and transportation – and the diverse meteorological conditions that operators must factor in,” Davies explains.
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