The company stated that the platform’s underwriting capabilities have been strengthened in response to rising investment, larger-scale developments, and growing operational complexity across the sector.

As demand continues to grow across hyperscale, colocation, and enterprise data centre projects, Insurisk has expanded its specialist capacity and underwriting expertise. These enhancements are intended to support owners, operators, and developers throughout the full project lifecycle, from initial construction through to ongoing operations.

Through the updated Insurisk Data Centers offering, CRC Specialty brokers are now able to access up to $500 million in total capacity spanning property coverage, including Builders Risk, as well as casualty lines. According to the company, this capacity is backed by a diverse capital base that includes traditional insurers, multinational reinsurance partnerships, and alternative capital sources such as insurance-linked securities.

The expanded capacity is designed to complement existing insurance programs established by retail clients, offering higher limits and more tailored coverage to strengthen overall program resilience.

CRC Group noted that these increased limits are structured to support large-scale, capital-intensive data centre projects, including new developments, facility expansions, and operational sites. The enhanced platform also addresses evolving risk considerations such as higher power densities, advanced cooling systems, business interruption exposures, and construction-related challenges.

“Data centers represent one of the most critical and fastest-growing infrastructure classes globally,” added Insurisk President Alex Bonds. “Our enhanced capabilities reflect both the increasing sophistication of these risks and our commitment to delivering tailored, high-capacity solutions for clients and broker partners operating in this space.”

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Speaking during the recent Digital Infrastructure Press Webinar hosted by Marsh, Mike Matthews, Global Digital Infrastructure Leader at Marsh, said that the unprecedented size and scale of today’s data centres make insuring these assets challenging.

“What we’re seeing right now is just sheer size and scope,” he said. “You have a $4 billion data centre with $10 billion worth of equipment in a single site facility. So, the size and scale is the challenge. And stacking that risk with multiple partners and carriers is obviously going to be the trend.”

Matthews noted that these projects require a lot of risk engineering upfront, including catastrophe modelling and site design.

“We talk about the acquisition phase—pre-development—so acquiring capital, land, power, tenant, you really have to evaluate all of that prior to making the investment as an investor. Getting that right upfront, looking at everything from the right EPCs, engineers, architects, designs, and proven technology, that all goes into that risk engineering process pre-insurance. And then all the capital in the reinsurance markets that we’re going to get creative with over the next few years, I think that’s going to be an integral part of the successful insurance modelling of these projects,” said Matthews.

Jeremy Goodman, Chief Client & Growth Officer for Guy Carpenter, the reinsurance broking arm of Marsh, reiterated that the data centre asset is insurable, but its coverage depends on whether insurers and reinsurers understand the risk, can quantify it, can measure the exposure, etc.

“The terms, conditions, coverage, and the capacity that is available will reflect the insurers and reinsurers’ knowledge and understanding of that particular asset,” Goodman explained.

He added, “Those that engage the insurers and reinsurers to help them understand how they’re approaching the project, how it’s going to be built, which contractors are going to be used and so on, will increase that comfort level. Overall, to meet a lot of the needs and the fast pace with which this is moving, there can be improved communication and engagement between the various different sponsors and principals, and the insurers and reinsurers, that will increase the knowledge, the understanding and the comfort level. As a result, I think that capital that is sitting on the sidelines, to some degree, within the reinsurance market will be more inclined to be able to come forward and deploy.”

Goodman emphasised that this will need to be done “a little more thoughtfully than it has in the past,” moving away from a site-by-site approach toward an interconnected ecosystem, enabling capital to be deployed at scale efficiently and sustainably.

During the webinar, Goodman also said that digital infrastructure represents one of the most significant capital deployment opportunities for the reinsurance market in a generation.

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The discussion featured Jeremy Goodman, Chief Client & Growth Officer for Guy Carpenter, the reinsurance business of Marsh, who outlined how the industry is adapting to the surge in large-scale digital infrastructure projects and the growing need for new insurance structures.

Goodman, reflecting on more than four decades in the insurance industry, highlighted how the role of data centres within the risk landscape has changed.

“The reinsurance market’s been underwriting data centres for decades,” Goodman said. “What has changed? It’s not the asset class, it’s the scale and the concentration.”

According to Goodman, the current development pipeline illustrates just how quickly the sector is expanding. “We’re currently tracking more than 1500 data centre projects globally, with over 900 of them still in planning, and more than 50 projects exceeding seven and a half billion dollars in capital,” he said, noting that many of these developments are clustered around major power hubs in the United States.

“That level of pipeline and capital intensity is unprecedented for what was historically viewed as a diversified commercial property segment,” he explained. “Digital infrastructure is shifting the diversified commercial property segment to more of a systemically concentrated infrastructure risk, and reinsurance needs to evolve from being transactional capacity to structural capital architecture.”

Goodman emphasised that while the nature of the asset class itself is not new, the magnitude of exposure has changed significantly.

At the same time, he pointed to the considerable amount of capital available to support the sector. “There’s an excess of $650 billion of dedicated global reinsurance capital, and that’s growing at roughly 10% year over year,” Goodman said. “About $125 billion of that capital now comes from alternative sources – pension funds, sovereign wealth funds, institutional investors – all seeking diversified asset classes.”

“So, the issue is not a shortage of capital,” he added. “The issue is how efficiently and intelligently we can deploy that capital and structure it.”

Ultimately, Goodman feels that “digital infrastructure represents one of the most significant capital deployment opportunities for the reinsurance market in a generation,” but he was quick to note that there are some shifts taking place.

One of the most significant structural changes involves the way large data centre campuses are being developed. “These large AI enabled campuses are clustering around constrained power nodes,” Goodman said. “These campuses share transmission infrastructure, substations, cooling systems, and often similar supply chains.”

This interconnected infrastructure means a single failure could affect multiple sites at once. “A single transform or a grid outage or extreme weather event can impact multiple campuses simultaneously,” he explained. “And given the size of these hyperscale campuses, the severity of loss escalates materially, both for property damage, delay in startup, and business interruption.”

As a result, reinsurers are increasingly assessing risks at an ecosystem level rather than looking at individual facilities. “Reinsurers are increasingly underwriting these ecosystems, not just the individual buildings,” Goodman said. “Data centres are no longer just large buildings, they’re concentrated power ecosystems.”

The market is beginning to respond with new insurance structures. Goodman pointed to “portfolio placements, sponsored risk pools and mutual structures that are supported by quota share and collateralised reinsurance” as examples of how capital can be deployed more efficiently across multiple projects.

Another development involves construction portfolio programmes. “We’re also seeing innovation in construction. Portfolio builders risk programmes can predefine eligibility criteria, engineering standards and risk controls across multiple projects,” he said. This approach allows developers to place several builds under a single framework rather than constructing separate insurance towers for each project. “When the projects scale, the insurance programme has to scale with them, structurally, not incrementally,” Goodman noted.

To conclude his opening remarks, Goodman said: “The market is not retreating from digital infrastructure, it’s innovating around it. And with more than 1500 projects globally, dozens exceeding seven and a half billion, digital infrastructure has become systemically important, and the strategic implications for the reinsurance sector are clear. It’s one of the largest capital deployment opportunities, but it requires a shift in mindset from transactional placement to structural capital architecture. From insuring buildings to underwriting interconnected infrastructure systems.

“The opportunity is significant. The capital exists. The challenge is our ability to structure intelligently, manage the aggregation rigorously and aligning deployment with multi-campus growth pipelines. And as digital infrastructure scales, risk capital must evolve from annually placement to strategic capital architecture.”

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Hiscox held an earnings call after reporting strong financial results for 2025, with Hiscox Re generating a profit before tax of $286.7 million, up 7% year over year, and an improved undiscounted combined ratio of 67.4%.

During the call, Musselle described data centres as a structural growth opportunity that underpins the digital economy.

“We’re curious, we’ve deployed some capacity in both our primary, in our London Market business, and in our reinsurance business. But at the moment, we’re thoughtful, because one of the significant areas that we need to get ahead around is accumulation,” said Musselle.

She continued, “And we’re also invested, at the same time, deploying a little bit of capacity, we’re also investing in building our own accumulation modelling so we’re really clear around where these accumulations lie, and we can actually manage them ourselves. So, yes, watching it, deploying some capacity, but also thoughtful in terms of accumulation.”

Brokers see data centres as a significant opportunity, with Marsh executives describing it as “the single biggest new business opportunity in 2026” during its Q4’25 earnings call. Lockton recently said the industry has been increasingly focused on risk engineering as data centres evolve into large, complex, multi-billion-dollar campuses. Meanwhile, Aon CEO Greg Case noted that demand in this area could generate more than $10 billion in new premium in 2026 alone.

Musselle also addressed product demand stemming from AI errors/hallucinations, stating that this is an emerging risk.

“There’s going to be some areas of risk that actually improve, because some of it is still driven by fat finger, and actually with AI, there is more consistency in terms of decision making. Maybe some of those errors and emissions actually improve. But there’s definitely new areas of risk, and we’re being really thoughtful about that,” she said.

“Certainly, from our point of view, we’re not going down the route of blanket exclusions. We’re being really thoughtful around the risks that they present, understanding those risks then, indeed, accommodating those risks, either pricing for them or providing affirmative coverage. A good example would be in our UK portfolio and our technology, we were one of the first to confirm affirmative AI coverage within that policy.”

Musselle stated that the other area that Hiscox thinks about is not just risk, but the opportunity.

She noted, “There’s a lot of people, there’s a lot of investment in AI and data centres, that’s attached to this digital world that all need insurance, and we’re really well placed to be able to provide insurance for the consultant who happens to be in that AI world. So, we’re also thinking about it from an opportunity point of view. How do we understand the risk? How do we develop our own products and services to help our customers with that risk? And, then also, how do we broaden our appetite to capture some of this more new economy in terms of their own insurance needs?”

During the call, Musselle also discussed the firm’s underwriting edge in reinsurance, stating that this is driven by a blend of external and internal data, as well as the use of technology in the underwriting process.

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According to Willis, the new group has been established to “redefine and address” the risks facing data centre owners, operators, contractors, and hyperscalers worldwide.

“This new cross-functional team brings together deep expertise across multiple sectors and geographies, including construction, energy, technology and cyber, real estate, supply chain, data analytics, risk engineering and financial as well as emerging risks,” Willis added.

The Global Digital Infrastructure Group will reportedly harness its deep industry knowledge and specialised expertise to support clients across the data centre ecosystem, helping them strengthen long-term competitiveness and resilience, reduce operational disruption, and optimise balance sheet protection.

The group also aims to drive sustainable growth, safeguard client trust and reputation, and reinforce corporate integrity while supporting global expansion, boosting operational resilience, improving cost efficiency, and enabling smooth business transformation to build stronger, more resilient organisations.

“Together, this global community of Willis experts provide knowledge and insights to deliver customized, end-to-end advisory and risk solutions that span the entire digital infrastructure lifecycle—from early planning, site selection and construction to managing alternative power generation, cyber, climate, natural catastrophe and supply chain risks,” Willis concluded.

Swift commented, “As demand for digital infrastructure accelerates, the launch of Willis’ Global Digital Infrastructure Group underscores our long-standing commitment to bringing specialist expertise together.

“This unique approach is already helping our clients stay ahead of the sector’s developments and risk trends.

“For data centers, this means tailored, client‑first solutions that protect physical assets, strengthen financial resilience, and support reliable operations at scale. Clients get clarity, confidence and the right cover based on their unique needs.”

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Nimbus Casualty is structured to provide significant financial protection for developers, owners, and operators, offering up to $75 million in capacity, with a minimum attachment point of $25 million.

It is supported by a panel of A+ rated Lloyd’s and London insurers, ensuring high-quality capital for complex projects.

Leveraging Marsh Risk’s proprietary XSellence excess casualty form, Nimbus Casualty delivers follow-form coverage across a client’s excess casualty program, enhancing coverage certainty and streamlining claims negotiation.

The launch of Nimbus Casualty follows the recent expansion of Marsh Risk’s large-scale data centre construction insurance facility Nimbus, which offers up to $2.7 billion in limits of traditional construction all-risks, delay in start-up, property damage, and business interruption cover.

Commenting on the launch, Paul Woodward, Head of Casualty, Marsh Risk International Placement, said: “The US casualty market presents increasing complexity and challenges, especially for digital infrastructure clients managing large-scale, high-value projects with long-term liability exposures.

“With Nimbus Casualty, we combine Marsh Risk’s market-leading construction expertise with our market-leading excess casualty form to provide clients with the advice and coverage certainty they need to efficiently safeguard their digital infrastructure investments.”

Mike Mathews, Global Digital Infrastructure Leader, Marsh, added: “Marsh’s Digital Infrastructure team is dedicated to driving ongoing innovation that empowers digital infrastructure owners and operators to meet the evolving demands of technology and sustainability.

“By integrating expertise across capital management, construction, energy solutions, and risk resilience, we help our clients not only build more efficient and powerful facilities but also ensure their long-term operational success in a rapidly transforming digital economy.”

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Due to high demand for new ways to manage cyber, technology downtime, and Service Level Agreement (SLA) exposure, Parametrix’s product suit – including Data Center SLA products and “CyberPMX” (Cyber and Tech E&O with embedded parametric BI) – has gained significant traction.

These new hires will enable Parametrix to enhance underwriting, distribution and claims execution.

Eva Kwan was appointed as Head of Claims & Legal, overseeing legal, regulatory, and compliance matters, while also managing the Company’s claims strategy and execution.

Kwan brings nearly two decades of insurance coverage and claims experience to her role, having most recently served as Vice President of Claims at At-Bay.

Prior to At-Bay, the executive served as North American Regional Head of Cyber, Media and Technology Claims, at Allianz; and as Assistant Vice President of Claims, at Hiscox USA, where she oversaw media, technology and other professional liability claims.

Kwan, an attorney, has also experience as outside counsel for both domestic and Lloyd’s insurer clients, offering advice and representing insurers in insurance coverage disputes. Additionally, she has represented corporate clients in broader commercial litigation matters.

Albert Huang takes the role of Vice President & US National Wholesale Lead, Underwriting. Based in San Francisco, Albert brings extensive underwriting experience from Liberty Mutual and At-Bay.

In his new role, he will partner with wholesale brokers nationwide to deliver differentiated solutions spanning cyber liability, technology E&O, and contingent business interruption risks, while strengthening Parametrix’s wholesale-focused product offering within its broader broker ecosystem.

Kerri Colwell was appointed Director of Digital Infrastructure Practice, responsible for supporting the structuring and distribution of the company’s Data Center SLA solutions.

Colwell joins Parametrix with over 11 years of extensive experience in data centre development and financing, most recently serving as Senior Vice President of Institutional Real Estate at Citizens Bank, where she specialised in underwriting and structuring large-scale digital infrastructure transactions.

Rick Wong, Head of Insurance at Parametrix, commented: “This is just the beginning of how we’re scaling our cyber underwriting team. Demand for our tech and cyber offerings continues to accelerate, and adding Albert and Eva is a clear reflection of both that growth and our long-term commitment to the wholesale and retail broker community.

“We are actively investing in underwriting and claims capabilities and expect to continue expanding the team as adoption grows and brokers look to us to support increasingly complex placements.”

“These hires are about positioning Parametrix for the next phase of growth,” said Jonathan Hatzor. “As business interruption and SLA performance risk become central financial considerations for cyber and digital infrastructure clients, we’re investing in leaders who bring the right mix of market expertise and executional strength.

“Kerri understands how data centre risk intersects with financing and valuation, which is exactly what our broker partners need as SLA exposure becomes a central deal consideration,” Hatzor added. “Albert brings exceptional cyber underwriting expertise and market reach at a time when our hybrid cyber product is scaling rapidly. And Eva’s depth of experience in cyber and technology claims is critical as we continue to grow volume while maintaining the claims standards brokers expect.”

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A surge in new capacity and a sharpening focus on risk engineering are creating a “buyer-friendly” insurance environment, even as the scale of assets reaches unprecedented heights, Lockton notes in its recent Data Centre Market Update.

The growth of these high-density clusters brings challenges and “grey areas,” where traditional insurance coverage may fall short, the insurance broker highlighted.

Revenue loss from service-level agreement (SLAs) breaches remains a major gap, as traditional property policies require physical damage to trigger. This is driving interest in parametric solutions that pay out based on defined performance failures.

The growing value of customer-owned GPUs and AI hardware in data centres makes unclear loss/damage responsibility a major issue.

Lack of clear risk allocation risks complex lease disputes, supply chain interruptions, and broader community consequences following an incident. Clear risk ownership is therefore critical, according to Lockton.

As power demand accelerates, insurers are scrutinising how facilities secure resilient, scalable energy supply. Dual‑feed grid connections, alternative fuels, and on‑site generation are becoming central to underwriting discussions.

A distinct divide is forming between older, older co-location sites and newer, hyperscale developments. While established facilities face greater attritional risks, the rapid technological advancements pose a risk of obsolescence for new sites.

Losses in the sector remain largely attritional, driven by equipment faults, cooling issues, and electrical failures. Individually small, these events accumulate and shape insurers’ views on operational discipline.

Data centre business interruption (BI) costs often exceed physical damage expenses, even from minor incidents.

This financial imbalance requires rigorous examination of business continuity measures, including redundancy, defined recovery times, and robust incident-response planning.

In a bid to support the growth of AI and economic productivity, new regulations to designate UK data centre projects as ‘nationally significant infrastructure project’ (NSIP) are moving closer.

This means that, following approval, developers will be able to bypass certain local planning hurdles. The government is currently working to slash the consenting timeline for these projects from an 18-month average down to just 12 months, providing the certainty required for massive capital investment.

Another hurdle for UK data centre development, according to Lockton’s report, is an unforeseen legal complication: Rights of Light. An emerging issue as developers focus on “grey belt” or brownfield industrial land within urban areas.

Since data centres are massive, windowless structures, they risk infringing on the natural light elements of neighbouring residential buildings, Lockton explains.

Such disputes can lead to injunctions that halt construction entirely. To combat this, the broker notes, the industry is increasingly turning to bespoke insurance products to cover potential damages and keep projects on track.

Looking through the remainder of 2026, Lockton predicts that the industry will be focused on sustainability and future-proofing.

Sustainability will remain a central theme, with AI‑enabled optimisation offering new ways to decrease energy consumption and extend the useful life of assets designed to operate effectively over many decades.

At the same time, the pace of innovation in AI and computation hardware will challenge operators to future‑proof facilities while maintaining insurability.

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Greenberg emphasised that Chubb has “doubled down” on its internal structure to provide a comprehensive suit of coverage tailored to the complex lifecycle of a data centre.

The executive highlighted Chubb’s ability to provide end-to-end insurance solutions on a global scale. The company’s involvement spans from the initial ground-breaking to the long-term operation of these facilities.

“This is a global opportunity where our capabilities are extremely broad,” Greenberg stated. “We’re in a rare group when it comes to capability. Builders risk, operations in terms of property. We also do engineering. We have a large capacity, and others take shares behind us.”

The CEO detailed an expansive list of exposures Chubb currently covers for data centre developers.

He said: “Chubb covers for Marine and all of the related exposures around that. Surety, liability, professional lines when it comes to design of data centres. We are one of the few that writes insurance around the broad variety of exposures globally, that those who were constructing data centres confront.

“On the utility and energy side, we are a major writer, and no one is building a major data centre without the energy and utility dimension of this. And we can seamlessly transition to that in coverage as well.”

Despite the surge in project announcements, Greenberg advises to remain cautious, warning against becoming “overly breathless” about the pace of development.

“The one thing I would say about this right now, is that there’s a lot of projects announced, how much of this actually gets built and over what period of time, remains a question,” Greenberg stated.

“There are headwinds around availability and affordability of energy to power data centres. And that is a rising and growing problem. How fast does that get addressed? For each data centre it’s a different answer depending on where they’re located.

He concluded: “There’s more pushback on where data centres will be built. There is the question of labour, and is there labour available for the construction of data centres. Supply, and the supply chains and the cost of supply are questions that hang out there. So, there’s a lot announced, we’re all focused on it, but I’d be careful not to be overly breathless about this.”

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After completing the sale of the treaty reinsurance operations of Willis Re to Arthur J. Gallagher & Co. in late 2021, WTW confirmed in late 2024 that it intended to re-enter the market via a joint venture with private investment firm, Bain Capital.

Since then, Willis Re has made numerous hires as the build-out continues. And in April of last year, WTW’s Chief Executive Officer (CEO), Carl Hess, stressed that the joint venture is progressing well.

During the recently held WTW fourth quarter and full year 2025 earnings call with analysts, leaders at WTW were questioned on Willis Re, specifically if anything had been learned from the 1.1 2026 reinsurance renewals.

“So, we’re very happy with the trajectory of the build-out of Willis Re, it is going according to plan. And the business was able to participate in the 1.1 renewal cycle, and we’re very happy with how that went from a business and operational perspective,” said CFO Krasner.

In today’s results announcement, WTW revealed that it expects Willis Re to be a headwind on Adjusted Diluted EPS of ~$0.30 this year, stating that the remaining equity investments in the interest in earnings of associates line are not expected to be material in 2026.

Krasner emphasised on the call that WTW will continue to make investments in its reinsurance joint venture as it scales its newly launched commercial operations.

During the Q&A, WTW was also quizzed on whether a fully operational Willis Re would make the group incrementally competitive in winning some of the digital infrastructure business, an area WTW highlighted a strong and growing presence, supporting five of the 10 largest data centre developers globally.

Lucy Clark, President of Risk & Broking at WTW, responded: “In terms of will the reinsurance business be supportive? Sure. But, we already have a ton of work in that segment, and really using the work that we’ve done with some of our largest global owners and developers, plus many of the top data centre construction companies. The guys have just announced that they’ve developed an integrated global risk framework to respond to this sector’s risk profile, one that is increasingly systemic, interconnected and difficult to address through traditional insurance solutions by themselves.

“Their framework is designed to address the full spectrum of risk facing data centre owners, operators and investors across the entire life cycle of the project, from development and construction through steady-state operations. The framework really gives a holistic view of both current and emerging risks, including those that are systemic, difficult to model or still evolving.

“So, we continue to see high demand for our offering from new business, of course, but also from the strong pipelines that are developed by our existing clients.”

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