Global Power Sector Demand Increases as Insurance Market Remains Competitive
News related to:Willis, a WTW business · 3 min read
LONDON, Sept. 15, 2026 /CourierPR/ -- Willis, a WTW business, has released its latest Power Market Review, highlighting the growing importance of the global power sector in driving economic growth. The review underscores the increasing demand for stable, reliable, and available power as a result of the electrification of various industries, including artificial intelligence, digital infrastructure, advanced manufacturing, and the transportation sector.
According to the report, the power insurance market remains highly competitive, with property capacity abundant and rates continuing to fall. Insurers are actively seeking growth, and well-managed power companies with strong loss records, credible valuations, and robust engineering information are leveraging the soft market to rebalance their risk strategies. However, catastrophe-exposed assets, vulnerable supply chains, emerging technologies, and risks with weak maintenance or operational data continue to attract closer underwriting scrutiny.
The report notes that while falling rates may create immediate savings, organizations should explore opportunities to strengthen resilience and prepare for future market cycles. Power companies can capitalize on current market conditions by reassessing their program structures and challenging existing pricing and design. Key findings from the report include:
- Power investment is not moving in one direction. Technology companies, infrastructure investors, and some private equity funds are all looking for ways to improve efficiency, reliability, and the carbon profile of power systems. Investment activity is increasingly targeting technologies capable of delivering step-change improvements in power generation and system performance.
- Nuclear investment is accelerating, but financing remains constrained by concerns over delays, cost overruns, and execution risk. The insurance market has an opportunity to help bridge this bankability gap through innovative risk transfer solutions, performance guarantees, and portfolio-based approaches that give lenders greater confidence and unlock capital for project delivery.
- Capacity for coal is still available for well-managed risks, although insurer scrutiny is expected to intensify over time. The best insurance outcomes will depend on how clearly insurance buyers evidence risk quality, asset stewardship, transitional plans, maintenance regimes, business interruption exposures, and portfolio-level resilience.
- For international liability, conditions continue to be increasingly favorable for buyers, due to increasing capacity, heightened competition, and greater pricing flexibility. However, certain exposures remain subject to greater underwriting scrutiny, such as wildfire and bushfire exposure, grid resilience, failure to supply, and coal-related risks.
- Demand for power continues to increase exponentially, pulling capital into the sector. However, it remains bound by macro M&A transaction trends. Private equity companies are facing constrained exits, longer holding periods, and challenging fundraising conditions. Deal ambition remains, but the route to execution is becoming more selective, more strategic, and more dependent on risk quality.
Rob Hale, global head of power and renewable energy at Willis Natural Resources, emphasized that current market conditions offer more than the chance to reduce costs. They create an opportunity to challenge insurance program architecture and reinvest into resilience before conditions become more challenging. In an interconnected energy system, insurance is not simply a mechanism for transferring loss. Used strategically, it can support investment, protect capital, strengthen resilience, and give power companies greater confidence to grow.
The companies that benefit the most from this cycle will be those that use today's conditions to build stronger, better-evidenced, and more future-ready risk financing strategies. Innovation and collaboration across all stakeholders in the value chain, including risk intermediaries, will play an increasingly critical role in de-risking investors' capital and unblocking continued growth.