Favorable insurance market not expected to last into 2027

Insurance buyers are enjoying a favorable market in 2026, but these good times won’t last, says David de Roode of Lockton Companies. In this video interview shot at the 2026 IADC Annual General Meeting in Dallas, Texas, on 3 November, Mr de Roode, Executive VP and Partner at Lockton, said he expects pricing to firm up in 2027 and cited an increase in losses and a shrinking OFS labor pool as factors that will push energy insurance rates up in 2027. He also discussed how market conditions are only part of the insurance story and how companies need to better understand and manage their risk profiles before deciding how to finance them. He introduced ARCA Type (Allocation Risk Capital Analysis), a framework of four behavioral types describing how management teams finance risk.