Lyo Foo, Head of Power, Natural Resources Asia, at Willis said, “AI and data centre growth are making reliable power a strategic asset across Asia. As large, concentrated loads expand, risk can no longer be assessed in silos: generation, grids, cooling, water,cyber, supply chains and business interruption are increasingly connected.”
The global power sector is becoming increasingly central to economic growth as artificial intelligence (AI), digital infrastructure, advanced manufacturing and the electrification of transport, buildings and industry increase demand for stable, reliable and available power.
At the same time, geopolitical and policy uncertainty, ageing assets, supply-chain bottlenecks and uneven grid infrastructure are shaping the direction and pace of change, according to the latest Power Market Review published by Willis, a WTW business.
Asia’s power insurance market remained highly competitive through the first half of 2026, supported by strong insurer profitability, abundant reinsurance capacity and sustained competition among international and regional insurers.
Well-performing power companies continued to secure premium reductions, broader participation and enhanced policy terms, particularly for gas-fired generation, renewable energy projects and operational assets with sound engineering standards and favourable loss experience.
This buyer-friendly market is developing as Asia’s digital infrastructure build-out creates a new wave of power demand. The region’s data centre development pipeline reached a record 26.5 gigawatts in the first half of 2026, with Southeast Asia accounting for
about half of capacity under construction.
As hyperscalers and AI platforms expand, reliable power supply is becoming a critical factor in where digital infrastructure is built,increasing investment in generation, grids, storage and behind-the-meter solutions Lyo Foo, Head of Power, Natural Resources Asia, at Willis said, “AI and data centre growth are making reliable power a strategic asset across Asia. As large, concentrated loads expand, risk can no longer be assessed in silos: generation, grids, cooling, water,cyber, supply chains and business interruption are increasingly connected.”
Power companies that use today’s market leverage to strengthen engineering evidence,stress-test recovery assumptions and align insurance with their growth plans will be best positioned to support the region’s digital infrastructure ambitions, he added.
Key Asia highlights from the report include:
-Capacity and competition remain strong. International and regional insurers are actively deploying capacity, while increased participation from Middle Eastern markets is adding competitive pressure to Asian insurance placements.
-Quality risks are benefiting most. Power assets with robust engineering data,
disciplined maintenance, credible valuations and favourable loss records are achieving
premium reductions, broader insurer participation and improved terms.
-Capacity for coal plant is still available for well-managed risks, although insurer scrutiny is expected to intensify over time. This is due to ESG commitments and sustainability objectives of many international insurers and reinsurers. The best insurance outcomes will depend on how clearly insurance buyers evidence risk quality, asset stewardship, transitional plans, maintenance regimes, business interruption exposures and portfolio-level resilience.
-Preparation remains critical for 2027. Early market engagement, transparent risk information, together with up-to-date engineering information and clear loss experience will help buyers convert abundant capacity into resilient, sustainable coverage.
Lyo added, “The outlook for the second half of 2026 remains positive. Asia’s power insurance market remains exceptionally competitive. International and regional insurers continue to deploy significant capacity, enabling many clients to secure premium reductions, broader insurer participation and enhanced policy terms.”
While engineering quality, operational performance and claims history remain important underwriting considerations, insurers’ desire to maintain premium income and expand market share has become the dominant factor shaping renewal outcomes, he said.