IMA - Markets in Focus Energy

Energy insurance markets are currently oversupplied with capital, leading to continued pricing pressure and improved terms for most lines.

Despite some loss activity in certain segments, rate decreases are possible for well-engineered risks with disciplined submissions. Geopolitical volatility in the Middle East is adding pressure to energy insurance programs, with disruptions affecting major LNG suppliers. London markets are expanding beyond large-cap energy risks, offering increased capacity and reshaping placement strategies for middle-market E&P, midstream, and contractors. Auto liability and umbrella lines are still constrained due to litigation inflation and adverse loss trends in certain regions. Control of Well risks are evolving, with attention shifting to Plug & Abandon operations and poorly documented assets. Claims severity, especially in environmental losses and business interruption disputes, is a key risk theme. Emerging power and data-center development are challenging traditional underwriting models, and private equity activity continues to drive demand for quality insurance. Preparation is crucial at renewal, with early marketing, risk management strategies, and aligned narratives improving underwriting outcomes in a competitive market.