Midstream
Market conditions
Capacity in the Midstream market remains strong. There has been no meaningful withdrawal of capacity, and many insurers are increasing line sizes as they look to deploy capital and secure premium income. Competition is also being fueled by insurers that operate across both the Upstream and Downstream sectors. This combination continues to create favorable conditions at renewal.
For well-performing risks, reductions remain achievable across all regions. Most organizations are seeing mid to high single-digit reductions, although outcomes continue to vary depending on loss experience, program structure, and previous pricing levels. Compared with other parts of the energy sector, Midstream has experienced relatively low loss activity, lower perceived pollution exposure, and a history of strong profitability. These characteristics continue to make it an attractive area for insurers looking to grow. Recent losses have done little to change that picture: 2026 saw no major Midstream losses recorded.
Despite this, conversations with insurers are changing. Traditional underwriting information remains important, but insurers are increasingly interested in how risks connect to wider geopolitical and supply chain issues. The Middle East continues to feature prominently in discussions, while sanctions exposure and global trade dependencies are receiving more attention than they have in previous years. War-related exclusions also remain a consistent feature of market wordings.
Regional conditions remain broadly favorable. In the US, competition remains strong, despite concerns around wider energy sector losses. Latin America continues to soften, supported by increasing pressure to benchmark local placements against London market pricing. The Middle East remains stable, with energy activity supported by strong LNG demand and higher commodity prices.
Insurers are also monitoring a range of emerging risks, including sanctions-related exposures, shadow fleets and the movement of Russian crude through global supply chains. These issues have not materially changed market conditions, but they are appearing more frequently in insurer discussions.
Outlook
The outlook for the Midstream sector remains stable to soft. Capacity is expected to remain strong, and in the absence of a significant market shock or major loss event, there is little sign of any immediate change to the competitive dynamics. Nevertheless, several factors could influence the market over the coming year:
- Geopolitical developments
- Broader loss activity across the energy sector
- The severity of upcoming natural catastrophe seasons
- Changes in insurer appetite and strategy
- Ongoing sanctions-related developments
- The evolution of war-related exposures
For now, claims activity remains relatively benign and Midstream continues to be one of the most stable classes within the energy insurance market. Previous loss events and natural catastrophe disruptions have already led to changes in policy structures around service interruption and related exposures, leaving the market better prepared to manage future volatility.