Managing the insurer profitability tightrope
The softening market cycle continues for most sectors and capacity is at an all-time high. But, as rates continue to fall, markets are balancing profitability concerns with pressures to grow market share. Upstream, downstream and liability energy companies have opportunities to take steps with confidence in 2025.
Even seasoned readers of this review will be forgiven for being confused by the complex and contradictory market dynamics that are emerging in 2025. The profitability tightrope is precarious, and loss activity in the first quarter of this year have the potential to tip the balance. But energy risks continue to attract large amounts of premium, positioning the class as an attractive proposal for capital providers due to the large potential returns in a profitable year. This has driven the increased investment in the sector with several insurers working hard to cement and grow their market share despite profitability concerns.
In this review, we offer a comprehensive analysis of the three key energy insurance sectors: upstream, downstream and energy liabilities, alongside a market view from our key geographical hubs of North America, Latin America, Dubai, Norway, Singapore and China, to arm energy companies with a thorough understanding of the driving forces behind the current market trends and enable them to make considered placement decisions. Our specialists also explore key renewable trends that are impacting the energy sector, including a deeper dive into the adoption of clean technologies and the evolving risk exposures for subsea cables as part of electrification strategies.
For energy companies, there is much to be positive about when looking forward to the remainder of 2025. Although losses loom over upstream and downstream markets with the threat of deterioration throughout the year, market competition, particularly for the most favoured risks, places buyers in a strong position to achieve competitive terms and pricing.
We hope that you find the Review to be insightful and look forward to discussing any of these topics with you in more detail.
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In this 2025 Energy Market Review article, we examine the upstream energy insurance market and how companies can strengthen their negotiating position when taking their risks to market.
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In this article from our 2025 Energy Market Review, we share the outlook for downstream energy insurance market trends in 2025 and reasons to be optimistic in a softening market.
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In this article from the 2025 Energy Market Review, we share the key trends emerging in the global and U.S. energy liability markets and how energy companies can navigate potentially choppy currents in 2025.
| Title | File Type | File Size |
|---|---|---|
| Energy Market Review 2025 | 6.2 MB |
