The global energy insurance market remains favourable to consumers amid rising losses, social inflation and geopolitical uncertainty, according to the latest Energy Market Review by Willis. The report said abundant capacity, intense competition and continued pressure on premiums have kept the market deeply soft.
The report noted that upstream insurance capacity has climbed to record levels of more than $10bn. Further expansion is also expected from new market entrants and broker-led facilities, but loss activity, shifting capital allocation and macroeconomic volatility could slow the softening cycle in the near term. The firm said there is currently no clear structural catalyst for a meaningful turn in pricing.
In Asia, the upstream market remains strongly buyer-friendly after another year of limited losses. The region continues to be seen by insurers as a key growth market, especially for established operators with strong risk management practices. The absence of major upstream losses through 2025 has also strengthened Asia’s standing within global insurer portfolios.
Asia’s downstream market, according to the report, remains in buyers’ favour in 2026 thanks to ample capacity and continued insurer appetite for growth. Competition is strongest for large refinery and petrochemical risks with strong engineering standards and clean claims records, while premium reductions continue at a more measured pace than in mid-2025.
Willis Head of Energy and Mining for Asia Charlotte Watts said the soft market is expected to continue through at least the first half of the year in Asia. “While insurers are increasingly conscious of rate adequacy and oversupply of capacity, ambitious growth targets are likely to cap any meaningful upward pricing pressure in the near term,” she said. “Insurance buyers are well positioned to lock in competitive pricing and improved coverage terms, especially where local market participation or captives can be leveraged.”
Willis also noted that recent tensions in the Middle East have increased focus on risk exposure, though it remains unclear whether the conflict will lead to major insured losses in the operational energy market.