The price to insure offshore drilling in the Gulf of Mexico has risen at least 15% since last month's Deepwater Horizon disaster and may stay permanently higher, as unknowns about the spill cleanup have left insurers feeling in the dark about their risks, industry executives say.
Rates have risen 15% to 25% for rigs operating in shallow water, said [Richard] Kerr, [chief executive of MarketScout, a Dallas-based electronic insurance exchange] whose monthly summary of insurance prices are followed by insurers and their commercial customers. Price increases for operations further out to sea might be as high as 50%, he said.
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