Published on 12 September 2025
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Midstream Energy Market Update H2 2025
Published on 12 September 2025
The Midstream Insurance Market in H2 2025 continues to follow the trajectory set in H1. Capacity remains stable, resulting in a persistent surplus and driving carriers to compete for market share.
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Losses in the sector are minimal, with initial concerns about new North American wildfires quickly fading. Rates continue to trend downward, with reductions ranging from 10% to 15%.
The upstream segment of the midstream market benefits from a relatively low loss ratio, continuing the softening market cycle. In contrast, the downstream segment faces increased loss frequency and severity, likely leading to market hardening. Differentiating between these segments is essential, as the upstream side involves the initial phases of oil and gas recovery, including the storage and distribution of unrefined products, while the downstream side focuses on refined products. This distinction determines the rating pressures and market dynamics applicable to specific risks.
Midstream risks leaning toward the downstream side are more likely to align with the dynamics outlined in the downstream market update. However, Alesco’s expertise and market leverage, uniquely position us to assist oil and gas clients in navigating this evolving landscape. Our teams work seamlessly across both sides of the midstream market, ensuring our clients achieve the best possible renewal terms.
Looking ahead to 2026, we anticipate the market flexing its muscles in the midstream sector, with upstream markets increasingly writing midstream business to offset a shrinking premium pool in the upstream book. This shift is expected to drive further rate reductions for midstream clients as the year progresses.
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Matt Byatt
Matt began his career at the JLT Group specialising in energy package programmes with a strong emphasis on North American business. After 14 years, Matt moved to Alesco with a significant development role in terms of new business, placing and implementation of complex programmes worldwide. Matt’s extensive international Upstream marketing and placement experience aligns with clients’ needs, and he will work closely with his broking colleagues and our servicing team, including claims when the situation arises.
Annelie Noble
Annelie has over twelve years of experience in the insurance industry. Having joined Gallagher in July 2020 as a mining and heavy industry specialist she has since focused on African and Australian mining clients across multiple commodities and mining/processing methodologies.
Prior to joining Gallagher she spent 10 years at Aon where after gaining a broad range of occupancy and geographical knowledge she specialised in mining and heavy industry accounts with a particular focus on steel, across Europe, Russia, and the Middle East.
She is experienced in the design and execution of large complex property risks, policy wording negotiations, and placement strategy and is able to support clients in either a wholesale or retail broking capacity as required.
