Hard market conditions in the property and business interruption are starting to turn, according to the WTW Power Market Review, published today.

While lower-level attritional losses remain a constant in the power sector, the absence of larger losses in 2023 and 2024 is expected to lead to more competitive pricing.

The international liability market has also stabilised, according to WTW, with a small uptick in capacity and softer market conditions, leading to greater competition and downward pressure on rates.

Rupert Mackenzie, head of global natural resources, WTW, said making strides in a softening market will mean getting valuations right, investing in risk engineering for ageing assets, and managing supply chain volatility.

“Re/insurers will need to lean into power companies’ specialist knowledge of operations and technologies to really understand their risks and find solutions that are commercially reasonable. Power companies are encouraged to present their risks with transparency, to help re/insurance markets understand the technologies and risk controls to right-size the cover,” he added. “With the market approaching a new phase, the value of getting this approach right is essential to take full advantage of opportunities. The better the market understands the client’s business, the more accurate and flexible the solutions can be.”

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