Chartered Insurance Institute

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Report on fracking implications for insurance industry

In March 2017 the Institute published a report on the potential impact of fracking in the UK. It was based on 18 months of research by a group of industry leaders, drawing upon the evidence and views of insurers, lawyers, loss adjusters, energy companies and environmental groups. According to a CII press release:

The report identifies and examines a number of key perils associated with fracking such as earthquakes, explosions and fire, pollution, injury and death. While cover for these risks are included in most insurance policies, fracking will pose additional complications around liability. Widespread fracking may also lead to increased claims frequency near fracking sites and then insurers may have to consider how they underwrite this emerging higher-risk group. [1]


Fracking is an emerging risk for the insurance profession and the group outlined three recommendations for insurers to prepare for this.
The key recommendations for insurers are:
  • The insurance profession needs to remain open and transparent about the risks of fracking by working together to monitor and discuss the issues as one profession
  • The insurance profession, energy industry and government need to work closely together to reduce the likelihood of potential risks occurring
  • Insurers need to be prepared for claims in the event of a fracking-related loss and consider policy wordings with increased fracking in mind


  • "Chartered Insurance Institute, 'Insurance implications of fracking', 20 March 2017
  1. Insurers need to prepare for the impact of increased fracking, Chartered Insurance Institute [republished on PoliticsHome], 20 March 2017, accessed 28 June 2017