Future-ready power companies are seizing the advantages of a soft market, according to the Willis Power Market Review

Rhea-AI Summary

Willis (NASDAQ: WTW) has released its Power Market Review, revealing a significant shift in the power insurance market favoring buyers. The report highlights that power companies are experiencing mid to high double-digit rate reductions for property damage and business interruption insurance, with increased market capacity and competition among insurers.

The review identifies key trends including the return of long-term agreements and no-claims bonuses, challenges faced by transmission companies, nuclear energy's potential role in powering data centers, and the impact of climate change on liability markets. Companies are increasingly utilizing captives and alternative risk financing strategies to manage market volatility.

Positive

• Insurance market conditions are softening with mid to high double-digit rate reductions
• Return of long-term agreements and no-claims bonuses
• Increased competition among insurers and market capacity
• Local markets gaining more underwriting authority

Negative

• Transmission companies face capital constraints for network upgrades
• Climate change and decarbonization pressures affecting liability markets
• Challenges from geopolitical volatility and aging infrastructure

News Market Reaction

+3.10%

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+3.10% News Effect

On the day this news was published, WTW gained 3.10%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

LONDON, Sept. 11, 2025 (GLOBE NEWSWIRE) -- After years of navigating tough market conditions, power companies are beginning to see relief. Capacity is returning, competition among insurers is intensifying and pricing is easing, shifting the balance decisively in favour of buyers, according to the Power Market Review published today by Willis, a WTW business (NASDAQ: WTW).

Insurers are actively competing for business, with power and utilities companies achieving mid to high double-digit rate reductions for property damage and business interruption. Long-term agreements and no-claims bonuses are making a return, while local markets are gaining underwriting authority, boosting responsiveness and competition. Although softening conditions are extending into international liability markets, these are tempered by the impacts of climate change and decarbonisation pressures. In response, buyers are increasingly turning to captives and alternative risk financing, retaining more risk internally as they navigate ongoing market volatility.

Key takeaways from the review include:

• Transmission companies have been swimming against the tide, facing pressures to supply growing demand, connect renewables at scale, manage intermittency and reliability — all without sufficient capital to upgrade networks.
• Nuclear energy is poised to be a key answer to the power needs of data centres, offering clean, reliable and scalable electricity to support the growth of the digital economy.
• The international power liability market is softening on the surface, with Lloyd’s reporting its third consecutive year of underwriting profit, but changing climate conditions and decarbonisation are impacting insurer appetite.
  

Rupert Mackenzie, Global Head of Natural Resources at Willis said: “The energy sector sits at the centre of an electrified future, yet it faces challenges from geopolitical volatility and climate-driven disruption to underfunded transmission networks and aging infrastructure. Demand is increasing exponentially, and future-ready power companies are responding by leveraging insurance strategically in today’s soft market. For power and utilities leaders, there is a clear opportunity to optimise risk strategies, control costs and position capital for sustainable growth in a rapidly changing landscape.”

The complete report can be downloaded here.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.

Media contact

Lauren David:
Lauren.david@wtwco.com / +44 7385947619

FAQ

What are the key findings of Willis's 2025 Power Market Review?

The review reveals a softening insurance market with mid to high double-digit rate reductions for power companies, return of long-term agreements, increased competition among insurers, and growing use of captive insurance solutions.

How is the power insurance market changing in 2025 according to WTW?

The market is shifting in favor of buyers with increased capacity, intensifying competition among insurers, and significant rate reductions. Long-term agreements and no-claims bonuses are returning, while local markets are gaining more underwriting authority.

What challenges do power transmission companies face according to the Willis review?

Transmission companies face challenges in supplying growing demand, connecting renewables at scale, managing intermittency and reliability, while lacking sufficient capital for network upgrades.

What role does nuclear energy play in data center power needs?

According to the review, nuclear energy is positioned as a key solution for data centers, offering clean, reliable, and scalable electricity to support digital economy growth.

How are power companies adapting to market conditions in 2025?

Companies are increasingly using captives and alternative risk financing solutions, retaining more risk internally, and leveraging the soft insurance market to optimize risk strategies and control costs.