Published on 21 July 2025

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Power Energy Market Update H2 2025

Published on 21 July 2025

The first half of 2025 has witnessed a continuation of the softening market that began in earnest at the end of 2024.

The rating environment continues to improve, with double-digit reductions now achievable on well-performing business. We find ourselves in a significantly more competitive and evolving marketplace, offering insureds the opportunity to leverage the soft market and achieve simplified insurance programmes.

Volt has been consolidating its position in the London market, striving for leadership roles and moving away from the follow position it initially adopted last year. Their capacity line size has increased to USD 37.5 million. The growing number of leadership opportunities across the market is fostering competition and providing insureds with a broader choice of leaders.

Notable movements within the market include the resignation of Matt Radbourne from MS Amlin to join Westfield Syndicate, where he will start a new book of business. Additionally, Lindsay Waller has resigned from MS Amlin to move to Swiss Re.

The Property D&F market continues to soften at an even further accelerated pace in comparison to the conventional power generation market, further intensifying competition within our programmes. Non-proportional placements are, on occasion, more competitive than QS placements, reversing previous trends from recent years. Our objective in the current market is to simplify our programmes to allow for less verticalisation of pricing and terms, while exploiting this particularly soft segment of the market to secure some of the most competitive capacity available.

Geopolitical factors remain a focal point for insurers, particularly regarding the implications for supply chain issues, especially in light of recent escalations in the Middle East. Insureds with larger inventories of spare parts and the capability to mitigate potential supply chain problems will be viewed more favourably and will be better positioned to capitalise on the soft market.

While the focus on accurate value reporting may be less critical than in recent years, it still remains under scrutiny and is widely regarded as a prudent risk management practice.

Coal capacity remains largely unaffected in terms of available global capacity. However, intense scrutiny persists concerning challenges posed by Environmental, Social, and Governance (ESG) factors. Insurers are also keenly aware of and focused on the life extension work being undertaken on major equipment.