SINGAPORE, 11 September 2025 — 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 power companies, 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 (LTAs) 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, power companies are increasingly turning to captives and alternative risk financing, retaining more risk internally as they navigate ongoing market volatility.
While the global power insurance market is shifting in favour of buyers, Asia’s dynamics are shaped by rapid economic growth and its unique energy transition journey. Coal and gas-fired plants still dominate the energy mix, but national strategies and sustainability commitments are accelerating the shift toward renewables and cleaner technologies. This evolution is driving insurers to offer more flexible, innovative coverage solutions.
Key takeaways on the power insurance market in Asia include:
“Companies with strong risk engineering and favourable loss histories are well-positioned to benefit from competitive terms and long-term partnerships with their insurers.”
Lyo Foo | Head of Power, Asia, Willis
Lyo Foo, Head of Power, Asia at Willis said, “As the region transitions toward cleaner energy, the insurance market in Asia is playing a critical role in enabling sustainable growth. Companies with strong risk engineering and favourable loss histories are well-positioned to benefit from competitive terms and long-term partnerships with their insurers. 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.”
In China, the power insurance market reached approximately 130 billion RMB yuan (USD18.2 billion) in 2024, with an 8.5% year-on-year growth, projecting to hit 140 billion RMB yuan (USD 19.6 billion) by 2025. Alna Gao, Deputy Leader, Power at Willis Natural Resources in China added this growth is mainly attributed to the accelerated advancement of electric power infrastructure construction and the enhanced awareness of risk management among electric power enterprises. Property insurance remains dominant, accounting for 45% of the market, followed by liability insurance at 30%, with others such as construction insurance.
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