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Power and Utility

Power and utility sector companies face complex regulatory and business risks along with the challenge of the ongoing global transition toward net-zero carbon emissions. Whether investor-owned, independent, or public/cooperative, Marsh has extensive experience in helping power and utility companies understand and mitigate these risks.

Power and utility companies are in transition. Worldwide, there is growing urgency to reduce carbon emissions. The International Energy Agency estimates that, by 2025, renewable energy will become the largest source of electricity generation — surpassing coal — and accounting for more than one-third of total electricity demand.

US power and utility sector companies will need to embrace this change, as well as accompanying legislative, regulatory, and public pressures, by adding generation and transmission infrastructure, replacing or retrofitting aging assets, and adjusting their business strategies. For some it will be relatively easy. For others it will be challenging. But all will have to manage the changing expectations of the customers and stakeholders they serve.

All of these changes come with heightened risks. In addition to deploying new technologies, power and utility companies need to be prepared for a wide range of issues that can affect their operations and productivity, including evolving regulations, natural disasters and extreme weather, supply chain disruptions, and cyberattacks.

Marsh's team of risk specialists has a deep understanding of the power and utility sector as well as tools to help you identify, analyze, and mitigate your risks.

Related insights


Power and utility companies have varying risk profiles ― depending on their business models, service area, and specific assets ― but property and liability risks can be significant for all of them.

Insurance and advisory solutions that can help companies in this sector mitigate and transfer risks include:

  • Property
  • Business interruption
  • General liability
  • Directors and officers liability
  • Transactional risk (i.e., tax, representations and warranties)
  • Cyber liability
  • Environmental liability

Marsh’s energy risk specialists are experienced in the power and utility sector and can bring sophisticated tools and analytics to help your business remain resilient and continue to meet the energy needs of your communities.

Natural disasters and severe weather outbreaks can cause substantial physical damage and business interruption for power and utility companies. Year-round, conditions ranging from temperature extremes to excessive rainfall to drought can damage or strain power generation and transmission equipment, and cause prolonged outages.

In addition to maintaining and monitoring critical energy assets, you should work with energy risk specialists to design and implement adequate risk management and insurance programs that can strengthen your property risk resilience.

Increasing connectivity and evolving tactics by cybercriminals are exposing all industries to a greater risk of cyberattacks. In the power and utility sector, particular concerns are ransomware and targeted attacks on operational technology, which control the machines, systems, and networks used to generate and distribute energy.

While cyber risk awareness and mitigation tools have become mature in information technology (IT) systems, operational technology (OT) systems are at earlier stage of understanding and addressing cyber exposures. Attacks on OT can result in power outages and physical damage, making the impact on energy buyers and consumers much greater.

You should consider consulting an experienced risk specialist, such as Marsh, to help you identify, measure, and manage your risks and exposures from cyber and other threats.

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Michael Kolodner

Michael Kolodner

Energy & Power Leader

  • United States