The latest Energy Markey Review Update from Willis says that insurance buyers in the energy market are in a strong position to negotiate cost and coverage terms and that the market has softened further and faster since its previous update was published in April.

Willis said 2025 had been a record year of low loss activity in the upstream energy market, which it attributed to improved standards in risk management and asset quality.

In contrast, it said downstream insurers had been hit with losses of approximately £2.7bn with claims already equalling market premium. The report found that six of the eight major losses in the year have occurred in the US, largely in the refining sector. This has put a focus on businesses with US exposure, but Willis said premium reductions were still available.

Rupert Mackenzie, global head of natural resources at Willis, said: “Insurers have reported strong financial results at the end of Q3. The ongoing oversupply in capacity and insurer appetite for growth is simplifying previously complex verticalised placement structures, yielding premium savings for clients.

“This means that energy companies renewing in Q4 2025 and looking forward into 2026 are in a strong position, with room to negotiate conditions in addition to price.”