Power Market Review 2023

The 2023 Power Market Review explores the theme of "A smarter way to manage resilience in a volatile world" and highlights four primary challenges facing the power market and insurers. These challenges include the Russia-Ukraine conflict's impact on energy security, global inflation affecting purchasing power and costs, the urgency of addressing climate change and energy transition, and disruptions in supply chains and technology advancements. In the report we also examine the influence of El Niño on the power market from an insurance perspective.

Part One of the report delves into these challenges, discussing geopolitical risks, recession management, vulnerabilities related to climate change, considerations for power companies, evolving cyber insurance risks, and parametric insurance in the power market. Part Two focuses on the state of the power insurance markets in 2023, including challenges faced by power underwriters, property markets, international liability, and the construction sector.

As we embark on this journey through the 2023 Power Market Review, we do so with purpose and dedication. The symbiotic relationship between the power sector and the insurance market underscores their shared interests. Threats to insurers in terms of risk also endanger power sector customers. This alignment necessitates a reconsideration of risk transfer strategies, placing insurance market challenges at the forefront of strategies for both insurers and customers.

The challenges ahead are formidable, but they present opportunities to build resilience, innovate, and navigate the path ahead. The power sector's role in shaping a sustainable future is vital, and the insurance industry is a steadfast partner in this endeavour. Together, we ensure resilience remains central to our strategies, empowering power companies to weather change, emerge stronger, and face the challenges of tomorrow.