Willis report shows power insurers cut premiums as capacity returns

Appetite is strong for infrastructure projects in Indonesia, Vietnam and the Philippines.

Power companies are benefiting from a softer insurance market as capacity returns, competition intensifies and premiums ease, according to Willis’ Power Market Review.

Property damage and business interruption cover are seeing mid to high double-digit rate reductions, with long-term agreements and no-claims bonuses re-emerging. 

Local markets are also gaining more underwriting authority, adding to competition. 

Whilst international liability markets are softening, climate change and decarbonisation pressures continue to weigh on pricing, prompting some power companies to retain more risk through captives and alternative financing.

In Asia, rapid economic growth and the shift toward renewables are shaping insurance dynamics. 

Premiums for property and business interruption are under downward pressure, with insurers offering two-to-three-year agreements for pricing certainty. 

Insurer appetite is strong for infrastructure projects in Indonesia, Vietnam and the Philippines, particularly those backed by international funding. 

Emerging technologies such as hydrogen power are also pushing insurers to adapt their risk frameworks.

In China, the power insurance market grew 8.5% year on year to $18.2b in 2024 and is projected to reach $19.6b in 2025. 

Property insurance makes up 45% of the market, followed by liability insurance at 30%. 

Willis said growth is being driven by new power infrastructure investment and stronger risk management practices amongst power companies.