Energy insurance buyers in North America can expect further rate reductions at January renewals as capacity remains stable and competition grows, Willis Towers Watson said Thursday.
Upstream energy risks with good loss histories can expect reductions of 5% to 15%, while downstream renewals can secure aggressive reductions of 20%, with renewals seeing 10% to 15% reductions on average, the brokerage said in a report.
Upstream markets typically involve the exploration and production of oil and gas, while downstream includes refining, processing and petrochemical operations.
In North America’s upstream market, the lack of major loss events is helping to lower premiums.
“Capacity is stable and underwriting appetite is increasing moderately, which is fueling the competitive pressures to maintain and grow market share among underwriters in the region,” the report said.
Downstream insurers have been hit with $3.5 billion in losses so far this year, according to Willis. Six of eight major refining losses in 2025 occurred in the U.S., putting clients with U.S. exposures under scrutiny, the report said.
Despite high-profile refinery fires, downstream energy companies with solid loss histories are still securing rate reductions.
“Major losses have been covered by catastrophe bonds, and the downstream energy property insurance market in North America has maintained its profitability streak,” the report said.
Without any market withdrawals, capacity remains stable and placements are oversubscribed, keeping competitive forces at play, it said.
Meanwhile, casualty capacity remains stable, with some outliers.
“Most sectors are renewing at flat to low single-digit increases for workers’ compensation and general liability,” the report said.
The exception is auto liability, where claims inflation and an increase in litigated claims are driving high-single-digit to low-double-digit rate increases. Insurers are paying close attention to buyers’ fleet safety programs, the report said.
Overall, the excess casualty market has begun to stabilize, Willis said.
Lead umbrella capacity remains limited for many industries, with a key market reducing lead capacity to $5 million from $10 million on energy risks.
“Capacity within the first $25 million remains cautious due to lawsuit abuse issues in the U.S.,” the report said.
For excess layers above $25 million, capacity remains stable, with strong availability from both domestic and London markets.