Lancashire Insurance Group has extended its insurance protection against windstorm losses to new clients among the oil and gas companies operating in the Gulf of Mexico.

OCTOPUS has previously only been available to Lancashire's existing subscribers.

OCTOPUS was designed to ease the current dislocation in the offshore energy insurance market caused by Hurricane Ike in September 2008, which was one of the top three most damaging hurricanes to the Gulf of Mexico energy industry. Insurance capacity is estimated to have halved since Hurricane Ike, creating an unstable and uncertain pricing environment.

As a Gulf of Mexico energy insurer, Lancashire has acted to reduce the uncertainty facing clients and brokers, and OCTOPUS provides a viable option for Gulf of Mexico clients seeking windstorm protection. Specific features include:

- Clear coverage for fixed deepwater assets and self-propelled drilling units on a total loss basis

- Minimum commitment per unit of $25 million

- No sharing of limit or aggregate

- Units individually rated up to a maximum of 7.5 percent Rate on Line net

- Standard payment terms and no multi-year purchase requirement

Richard Brindle, group CEO of Lancashire, said: "In challenging times you look for certainty and Lancashire is delighted to extend OCTOPUS to new clients. The Gulf of Mexico energy market is currently in a state of disarray with capacity severely constrained and no discernible consensus on pricing. Alternative options have been unable to offer certainty, providing cover on a pooled basis with a shared aggregate, thus uncertainty for clients remains.

"OCTOPUS provides clients with the certainty they seek and further strengthens Lancashire's position as a leading provider of innovative and user friendly insurance products."