How can Asia’s energy insurers keep prices low as global risks rise?

Light losses and excess capacity offset geopolitical and economic pressure.

Asia’s energy insurance market remains firmly in buyers’ favour despite rising global losses and geopolitical strain, supported by light claims in the region and surplus insurer capacity.

Losses linked to oil and gas production in Asia have remained low through 2025, according to Willis, a business of Willis Towers Watson Public Ltd. Co. The absence of major claims has helped keep Asia among the strongest-performing regions in insurers’ global portfolios.

Insurers continue to regard Asia as a growth market, particularly for established oil and gas operators with strong safety standards and clean claim records.
That has allowed buyers to secure competitive pricing even as global risk levels rise.

Conditions are also favourable for buyers covering refineries and petrochemical plants in Asia heading into early 2026. Capacity remains ample and insurer appetite strong, helped by the lack of large regional losses.

Competition is strongest for facilities with solid maintenance records and limited claim history. Rates are still declining, although the pace has slowed compared with mid-2025.

Insurers are applying closer scrutiny to assets with exposure to the US, where loss experience has been heavier. Willis expects soft market conditions in Asia to persist through at least the first half.

Insurers continue to push growth despite concerns about pricing discipline and the amount of unused capital in the market.
This is letting buyers secure lower prices and broader cover, particularly where local insurers or captive insurers are involved.

Globally, pricing pressure also continues. Capacity for oil and gas production risks now exceeds $10b and continues to grow as new insurers and broker-led facilities enter the market.

Losses, capital movements, and economic volatility could slow the cycle, but no clear trigger has emerged for sustained price increases.

Losses at refineries and petrochemical plants have been higher worldwide. Gross losses reached about $6.8b in 2025 and continued into early 2026.

Even so, new capacity from managing general agent platforms and The Society and Council of Lloyd’s, commonly known as Lloyd’s of London, has kept competition strong.

War in the Middle East has increased attention on energy supply risk, although insured losses tied directly to the conflict remain limited. 

Willis said losses have not yet been large enough to absorb surplus capital, leaving pricing largely disconnected from risk levels.

Economic spillovers pose a separate challenge. S&P Global, Inc. said Asia-Pacific insurers face indirect pressure from extended disruption to energy supply given the region’s reliance on imports.

S&P’s base case assumes disruption to the Strait of Hormuz eases during April, although some supply issues may persist.
Under that scenario, Brent crude averages $92 per barrel in the second quarter and $80 for the full year.

Questions to ponder:

• What level of losses would end Asia’s buyers’ market in energy insurance?
• How long can pricing stay low if geopolitical risk turns into sustained claims?