Energy insurance market H1 bulletin July 2025

Competitive Pressures and AI Innovation Shape H1 Insurance Landscape

The first half of the year was marked by significant insured losses in the downstream market, yet rating levels continued to decline due to increased global capacity and competitive pressure. Upstream and power markets remained soft, with rate reductions supported by stable loss environments and new entrants expanding underwriting appetite.

Long Term Agreements gained traction amid market uncertainty, while cyber risks intensified with digital transformation, prompting insurers to evolve coverage and pricing strategies. AI is increasingly shaping both cyber defence and underwriting practices. Despite notable global losses across refineries and offshore platforms, underwriting remains competitive, with further rate softening expected into H2.