Insurers slash premiums for oil projects outside Middle East

AI digestMimile.ai EditorialJuly 24, 2026 at 01:00 AM

This digest was compiled by AI from multiple sources — links to the originals are below.

Global insurers have cut premiums for upstream energy insurance outside the Middle East by about 25% year to date, according to brokers. The reductions, reaching up to 50% in some cases, reflect a scramble for market share as oil companies shift investments away from the conflict zone. The trend underscores a structural reallocation of capital amid the Iran war.

Premium Decline

Premiums for upstream energy insurance outside the Middle East have fallen about 25% year to date, the Financial Times reported, citing insurance brokers. In some cases, insurers have slashed rates by as much as 50%, even at a short-term loss, according to industry insiders. The cuts follow the outbreak of the Iran war in late February, which turned the world's lowest-cost oil and gas region into an active war zone.

Insurer Competition

The race for underwriting business in less volatile basins has intensified. Rupert Mackenzie, a natural resources insurance broker at WTW, told FT that upstream energy has been a very profitable sector and insurers want ongoing exposure. WTW's April report noted that ratings are 'through the floor,' with 15-20% reductions available for core upstream risks and 40%+ reductions still observed in exceptional cases.

Big Oil Shift

Major oil firms are doubling down on exploration outside the Middle East, focusing on high-impact projects in Guyana, Suriname, Namibia, Brazil, Turkey, and Cyprus. Exxon and Chevron are expanding operations offshore Guyana, where billions of barrels of crude have been discovered. The shift away from the Middle East is driven by the need to minimize losses from curtailed production and the Strait of Hormuz crisis.

What's Next

Insurers are expected to continue competing for upstream business in non-Middle East basins, potentially driving premiums even lower. It remains unclear how long the pricing war can last before underwriting losses force a correction.

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Insurers slash premiums for oil projects outside Middle East

oilprice.com

OilPrice

Finance

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Finance

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Insurers slash premiums for oil projects outside Middle East

Premium Decline

Insurer Competition

Big Oil Shift

What's Next

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