BE - September 2026

The global offshore energy insurance market remained challenging in 2025, with premium growth largely reflecting currency movements and changes in business mix rather than underlying market expansion, ac- cording to the International Union of Marine Insurance (IUMI). Speaking at IUMI’s annual confer- ence in Rotterdam, Michele Cibrario, Chair of IUMI’s Offshore Energy Committee, reported that global off- shore energy premiums totalled $4.8 billion in 2025, representing an in- crease of just 0.1% on the previous year. This figure is likely to include some double-counting due to local (i.e. domestic) policies placed in the London market and retrocession. The London market, comprising Lloyd’s and the International Under- writing Association (IUA), continued to dominate, accounting for approx- imately 60% of global offshore en- ergy premium, a share that remained broadly stable during 2025. Cibrario cautioned that reported pre- mium growth across some regional markets should be viewed in the context of currency movements and the international reinsurance struc- ture. Despite headline increases reported in some markets, the overall offshore energy market remained highly com- petitive throughout 2025, with ca- pacity continuing to exceed demand, as many insurers remained focused on growth despite ongoing pressure on profitability. The claims environment was rela- tively benign, with no major losses of sufficient magnitude to materially af- fect the wider market. However, at- tritional claims continue to rise and are steadily eroding underwriting profitability, leaving the sector in- creasingly exposed should a major catastrophic event occur. The absence of significant large losses was reflected in overall loss ra- tios, which remained at very low lev- els at the start of 2025. These ratios are expected to develop as claims mature over time. 2026 loss activity is trending higher compared to this time last year. Looking ahead, Cibrario highlighted a likely increase in capital expendi- ture across the energy sector during 2026, driven largely by concerns over energy security. Many offshore sites have yet to return to full operation following the disrup- tion caused by geopolitical events. As investment and redevelopment gather pace, insurers are likely to see renewed exposure to construction, testing and commissioning risks. Renewables also represent a signifi- cant opportunity, although profitabil- ity remains challenging. Of the total offshore energy premiums within the London market, 30% represent re- newables and the scale of future in- vestment is substantial. Approximately two-thirds of the USD 3.3 trillion globally invested in en- ergy in 2025 were directed towards renewable energy and 2026 is widely expected to confirm such a trend. Summing up, Cibrario said: "The global energy market is entering a period of major investment, driven by energy security, geopolitical ten- sions and the transition to lower-car- bon energy. Investment across oil and gas, LNG and new energy infra- structure is increasing the value and complexity of the risks that insurers cover." “At the same time, energy insurance is facing growing pressure on prof- itability. Inflation is increasing repair and business interruption costs, while rising attritional losses and longer-term construction risks are adding to claims. Competition, abun- dant capacity and limited major losses have also kept prices under pressure. More interconnected infra- structure is increasing accumulation risk, while changes in ownership, government policy and subsidies are adding further uncertainty.” “This creates a clear challenge for energy insurers: the amount and complexity of risk is growing faster than the market's ability to assess risks appropriately. The priority is therefore not simply to write more business, but to achieve sustainable growth through educated underwrit- ing, effective accumulation manage- ment and prudent use of reinsurance. For energy insurers, success will de- pend on understanding the increas- ingly complex, interconnected and long-term risks being assumed,” he added. Global Offshore Energy Insurance ISSUE 213 SEPTEMBER 2026 the BANKING EXECUTIVE 21