WTW Power Market Review: Shifts in Reinsurance for 2024

The WTW Power Market Review, published on October 8, 2024, indicates that the (re)insurance market for property and business interruption is shifting following years of hard-market conditions. Analysts anticipate increased competition and lower pricing due to fewer large losses in the power sector in 2023 and 2024. Capacity in the international liability market is also stabilizing, which is contributing to more favorable market conditions.

Rupert Mackenzie, head of global natural resources at WTW, emphasizes the importance of transparency from power companies regarding their risks. He notes that a deeper understanding of operations and technologies will aid (re)insurers in tailoring their coverage effectively. The review highlights that improved risk management strategies, especially regarding aging assets and supply chain volatility, will be vital as the market transitions into a new phase where accurate valuations can unlock opportunities.

WTW remains committed to providing innovative, data-driven solutions to assist organizations in navigating the complex interplay of people, risk, and capital while enhancing their performance and resilience amid changing market conditions.