Asia’s energy insurance sector continues to operate in a buyer-friendly environment, with competitive pricing sustained by low regional loss activity and abundant underwriting capacity, even as global geopolitical and economic risks intensify.
Data from Willis, a business of Willis Towers Watson Public Limited Company, shows that oil and gas production losses across Asia remained subdued through 2025. The absence of significant claims has reinforced the region’s position as one of the stronger-performing segments within global energy insurance portfolios.
Insurers continue to regard Asia as a key growth region, particularly for established oil and gas operators with robust operational standards and strong claims histories. This has enabled policyholders to secure favourable terms despite rising global uncertainty.
Market conditions for refineries and petrochemical plants across Asia are also expected to remain supportive for buyers into early 2026. Insurance capacity remains plentiful, and insurer appetite continues to be strong, supported by the lack of large-scale regional losses. While rates are still declining, the pace of reductions has eased compared with mid-2025, indicating a gradual stabilisation rather than an accelerated softening.
Insurers are, however, exercising greater caution in underwriting assets with exposure to the United States, where loss experience has been comparatively higher. Willis expects the current soft pricing environment in Asia to persist at least through the first half of 2026.
On a global scale, energy insurance markets remain under downward pricing pressure. Available capacity for oil and gas production risks is estimated to exceed US$10 billion, reflecting continued capital inflows and the expansion of underwriting platforms, including managing general agents and participants in the Lloyd’s of London market.
Downstream losses have been more pronounced globally. Claims from refinery and petrochemical incidents reached approximately US$6.8 billion during 2025 and extended into early 2026. Despite this, the impact has not been sufficient to materially tighten global market conditions.
Insurers continue to expand capacity even amid concerns over pricing discipline and excess capital within the system. This ongoing competition is particularly evident where local insurers and captive insurance arrangements participate alongside international carriers, further supporting downward pressure on premiums.
Geopolitical developments, including ongoing tensions in the Middle East, have heightened attention on energy supply risks. However, insured losses directly linked to these events have remained limited. According to Willis, the scale of claims has not yet been large enough to absorb surplus capital, meaning pricing remains only partially aligned with underlying risk exposure.
Broader economic factors also contribute to market dynamics. S&P Global Inc. has highlighted that Asia-Pacific insurers face indirect pressure from potential disruptions to energy supply chains, reflecting the region’s reliance on imported energy. In its baseline scenario, S&P expects disruption in the Strait of Hormuz to ease by April, although residual supply constraints may persist. Under this outlook, Brent crude is projected to average around US$92 per barrel in the second quarter and approximately US$80 per barrel for the full year.
Key Market Indicators
| Indicator | Status |
|---|---|
| Asia oil & gas production losses (2025) | Low, no major claims |
| Global refinery & petrochemical losses (2025–early 2026) | ~US$6.8 billion |
| Oil & gas production capacity | Above US$10 billion |
| Market trend in Asia | Soft pricing, slowing declines |
| Insurer capacity | Strong and expanding |
| Brent crude forecast (S&P) | ~$92/bbl (Q2), ~$80/bbl (annual average) |
Overall, the combination of limited regional losses, strong insurer competition, and surplus capital continues to sustain soft pricing conditions across Asia’s energy insurance market, despite persistent global uncertainty and elevated geopolitical risk.