Future-ready power companies are seizing the advantages of a soft market, according to the Willis Power Market Review

LONDON, Sept. 11, 2025 (GLOBE NEWSWIRE) -- After years of navigating tough market conditions, power companies are beginning to see relief. Capacity is returning, competition among insurers is intensifying and pricing is easing, shifting the balance decisively in favour of buyers, according to the Power Market Review published today by Willis, a WTW business (NASDAQ: WTW).

Insurers are actively competing for business, with power and utilities companies achieving mid to high double-digit rate reductions for property damage and business interruption. Long-term agreements and no-claims bonuses are making a return, while local markets are gaining underwriting authority, boosting responsiveness and competition. Although softening conditions are extending into international liability markets, these are tempered by the impacts of climate change and decarbonisation pressures. In response, buyers are increasingly turning to captives and alternative risk financing, retaining more risk internally as they navigate ongoing market volatility.

Key takeaways from the review include:

• Transmission companies have been swimming against the tide, facing pressures to supply growing demand, connect renewables at scale, manage intermittency and reliability — all without sufficient capital to upgrade networks.
• Nuclear energy is poised to be a key answer to the power needs of data centres, offering clean, reliable and scalable electricity to support the growth of the digital economy.
• The international power liability market is softening on the surface, with Lloyd’s reporting its third consecutive year of underwriting profit, but changing climate conditions and decarbonisation are impacting insurer appetite.
  

Rupert Mackenzie, Global Head of Natural Resources at Willis said: “The energy sector sits at the centre of an electrified future, yet it faces challenges from geopolitical volatility and climate-driven disruption to underfunded transmission networks and aging infrastructure. Demand is increasing exponentially, and future-ready power companies are responding by leveraging insurance strategically in today’s soft market. For power and utilities leaders, there is a clear opportunity to optimise risk strategies, control costs and position capital for sustainable growth in a rapidly changing landscape.”

The complete report can be downloaded here.

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