Kathmandu. Despite rising global deficits and geopolitical tensions, the Asian energy insurance market is favourable for buyers. This is supported by low claims and the capacity of additional insurance companies in the Asian region.
According to Willis Towers Watson’s company, losses related to oil and gas production in Asia are expected to be low by 2025. The low number of large claims has helped Asian actuaries remain one of the best-performing regions in the global portfolio.
Insurers see Asia as a growth market, especially for well-known oil and gas operators with strong safety standards and a strong claims record. This has helped insurance buyers achieve competitive pricing even as the global risk level rises.
The situation is also favourable for buyers who will cover refineries and petrochemical plants in Asia by early 2026. The reduction in key regional deficits has supported the insurer’s considerable capacity and strong interest.
Competition is highest for facilities with good maintenance records and limited claims history. Insurance rates are still falling. However, the pace has slowed compared to mid-2025.
In the U.S., which has suffered high losses, insurance companies are scrutinizing risky assets more closely. Willis expects softer market conditions in Asia to persist for at least the first half of this year.
Insurance companies are chasing the growth despite concerns about pricing discipline and the amount of unused capital in the market. This is creating lower prices and greater coverage for buyers.
Insurance pricing pressures are also continuing globally. The potential for oil and gas production risk is now more than $10 billion and is growing as new insurance companies and broker-led facilities enter the market. –Agency
