Global premiums reached $4.8b in 2025 but increased only 0.1% from last year.
The offshore energy insurance market remained challenging in 2025 as excess capacity and rising claims costs continued to pressure profitability, according to the International Union of Marine Insurance (IUMI).
Global offshore energy premiums reached $4.8b in 2025, up just 0.1% from the previous year.
IUMI said the increase mainly reflected currency movements and changes in business mix rather than underlying market growth.
The figure may also include some double-counting from domestic policies placed in the London market and retrocession.
The London market, comprising Lloyd’s and the International Underwriting Association (IUA), accounted for about 60% of global offshore energy premiums, with its share broadly unchanged.
Michele Cibrario, chair of IUMI’s Offshore Energy Committee, said capacity continued to exceed demand, keeping competition high as insurers remained focused on growth despite pressure on underwriting returns.
The claims environment was relatively benign, with no major losses materially affecting the market.
However, attritional claims are rising and gradually eroding profitability. Loss ratios were low at the start of 2025 but are expected to increase as claims mature, whilst 2026 loss activity is trending higher than a year earlier.
Energy investment is expected to increase in 2026, partly due to energy security concerns.
This could raise demand for cover as offshore sites return to operation, particularly for construction, testing and commissioning risks.
Renewables remain a key growth area, accounting for 30% of London-market offshore energy premiums.
About two-thirds of the $3.3t invested globally in energy in 2025 went to renewables.
Cibrario said insurers face higher repair and business interruption costs, rising attritional losses and longer-term construction risks, making underwriting discipline and accumulation management increasingly important.