Power companies are being urged to use favourable insurance market conditions to strengthen resilience as electrification, artificial intelligence, digital infrastructure and advanced manufacturing drive a new wave of industrial growth.

Amid abundant capacity and falling rates, insureds with strong loss records, credible valuations and robust engineering data are well placed to reassess their insurance strategies. Catastrophe-exposed assets, vulnerable supply chains, emerging technologies and risks supported by weak maintenance or operational data will continue to face greater underwriting scrutiny.

The latest Power Market Review from Willis advises insureds to use these favourable conditions to strengthen resilience and prepare for a potential shift in the insurance cycle by reassessing programme structures, pricing and cover.

International liability conditions are increasingly favourable for buyers, supported by growing capacity, competition and pricing flexibility. Wildfire and bushfire exposure, grid resilience, failure to supply and coal-related risks remain subject to closer scrutiny.

Rob Hale, global head of power and renewable energy, Willis Natural Resources, said: “Current market conditions offer more than the chance to reduce costs; they create an opportunity to challenge insurance programme architecture and reinvest in resilience before conditions become more challenging. In an interconnected energy system, insurance is not simply a mechanism for transferring loss. Used strategically, it can support investment, protect capital, strengthen resilience and give power companies greater confidence to grow.

“The companies that benefit the most from this cycle will be those that use today’s conditions to build stronger, better-evidenced and more future-ready risk financing strategies. Innovation and collaboration across all stakeholders in the value chain, including risk intermediaries, will play an increasingly critical role in de-risking investors’ capital and unblocking continued growth.”

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