A Year of Strategic Adaptation
The energy sector in 2025 demonstrated a mix of renewed competition and selective underwriting discipline. While 2024 was marked by price stability, the market entering 2026 faces considerable uncertainty—ranging from geopolitical volatility to an increased frequency of catastrophic events. Within the insurance landscape, the softening trend observed in late 2024 has largely persisted, but it is now tempered by emerging cost pressures and an elevation in catastrophe activity.
Energy Market Overview
2025 continued the profitable trend for insurers, supported by an oversupply of capacity across nearly all segments. However, as we move into 2026, global premium growth is expected to decline due to heightened competition and reducing rates,
Well-managed accounts are seeing reductions of 20% to 30% which is driven by increased capacity from existing insurers and competition of new and existing MGA’s. The degree of softening varies based on factors such as loss record, engineering, Nat Cat exposures, coupled with a benign treaty renewal season. The latter part of 2025 revealed a clear oversupply of capacity, with insurers competing to maintain their positions, even with premium reductions of 20% to 25%. Certain regions of the world experienced even more pronounced reductions, largely due to local cedants utilizing treaties more aggressively to retain premium income in country.
Upstream Energy
The Upstream market is poised to favour buyers as the supply-demand balance continues to shift. Excess capacity and benign loss activity are contributing to this trend, with rates softening between 10% – 15% with some tendered accounts achieving up to 20%. Brokers are navigating a complex environment with access to over 140 markets, creating both opportunities and challenges in renewals and marketing. Risks in regions with strong domestic insurers are likely to face increased downward pressure on rates. Brokers face the challenge of balancing client savings with maintaining strong relationships across the value chain, as numerous underwriters compete for the same premium.
Midstream Energy
The Midstream market has transitioned from hardening to softening conditions by the end of 2025. Insurers see this a primary area of growth driven by the increasing importance and demand for natural gas and oil. Rate reductions range from 20% to 25%. Underwriters, driven by profitable performance and excess capacity in the Upstream sector, are seeking premium opportunities in the Midstream segment. The influx of new capacity has exerted downward pressure on Midstream rates. Favourable loss experience in recent years, has further contributed to this trend. As Upstream underwriters maintain their focus on Midstream business, brokers will navigate an increasingly competitive market and a continuing softening rating cycle.
Downstream Energy
The Downstream market experienced dramatic softening at the end of 2025, despite some ongoing loss development from previous years. This softening trend was supported by benign loss activity, with low operational and natural catastrophe losses. Although the natural catastrophe season was active, insurable losses did not significantly impact the Downstream market. While market capacity remained stable in 2024, increased capacity was visible in 2025, which will intensify competition and put further downward pressure on rates. Insurers, in their efforts to sustain market share and premium income, are showing a strong interest in high-quality accounts. This dynamic allows brokers to potentially negotiate improved terms and conditions for their clients with different markets and create further competition amongst insurers.
Renewable Energy
The renewable energy market continues to be in a high-growth phase. While Solar and Wind remain the dominant forces, the industry has shifted its focus from simple capacity expansion to grid integration, energy storage. Rates reductions are present but not on the same scale as Downstream Energy.
Solar and Wind Farms are highly exposed to secondary perils like Hail, Wildfire and localised Flooding which have become more frequent and severe in 2025.
The International Energy Agency (IEA) projects that global solar and wind generation sector will grow by 20% in 2026 so competition amongst insurers is increasing in this sector compared to 2025.
Property Market
We have seen more and more MGA’s setting up over the last 12 months; however, Whitecap continues to hold its significant position in the marketplace due to our very strong capacity providers.
We are seeing lots of Cedants reducing their retrocession purchase as there are heavy signings on the direct business. Many cedants are retaining premium to manage their net retained premiums position.
Loss free accounts are under big pressure, and we are seeing drops in deductible plus significant rates reductions. 2025 was a very profitable year for Power Generation and we expect to see rate reductions in the region of 30% for loss free accounts going forward.
We are seeing a lot of new accounts coming out of Asia, mainly from Japan on excess of loss basis where Earthquake, Tsunami and Fire following are placed separately. There is a flurry of accounts in the USA with Japanese interests as well.
Business in Australia and New Zealand continues to be competitively priced, with strong local market retaining as much as they can, opportunities are limited but we continue to review on case-by-case basis.
Whitecap Global Overview
Whitecap continues to achieve growth in its global energy and property portfolio’s. Our property and energy business maintains a worldwide scope, with a concentrated presence in Asia, Middle East, Africa, USA, Canada and Europe.
