Technology
Willis urges smarter data center insurance buying as capacity demand nears US $15 billion
Client insights show that sharper risk quantification can help stakeholders across the digital infrastructure ecosystem avoid unnecessary insurance spend while strengthening operational resilienceNEW YORK, July 27, 2026 (GLOBE NEWSWIRE) -- Willis, a WTW business (NASDAQ: WTW), today urged data center owners, developers, builders, operators and investors to rethink traditional insurance buying, warning that many organizations may be securing capacity beyond their actual exposure due to risks not
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Client insights show that sharper risk quantification can help stakeholders across the digital infrastructure ecosystem avoid unnecessary insurance spend while strengthening operational resilience NEW YORK, July 27, 2026 (GLOBE NEWSWIRE) -- Willis, a WTW business (NASDAQ: WTW), today urged data center owners, developers, builders, operators and investors to rethink traditional insurance buying, warning that many organizations may be securing capacity beyond their actual exposure due to risks not being fully understood or quantified. Sharper risk analysis can help all stakeholders make more informed decisions about insurance requirements, capital allocation and resilience planning. Capacity is available, but buying decisions should be risk and data-led Amid rapid growth in digital infrastructure and AI-driven demand, the sector has focused heavily on securing larger insurance towers. Willis' experience shows that the global marketplace can provide up to US$15 billion of insurance capacity for large-scale data center risks, if necessary. However, the more important question is how much capacity is needed based on a robust view of exposures across the digital infrastructure lifecycle. "The capacity is there," said Alastair Swift, Head of Global Specialties and the Global Digital Infrastructure Group at Willis. "The focus should be on using data-led analysis to quantify and differentiate exposure to secure appropriate insurance limits." Digital infrastructure risks extend beyond property values Digital infrastructure risk profiles can vary significantly based on site selection, power infrastructure, construction methodology, operational resilience, supply-chain dependencies, climate factors and cyber vulnerabilities. Willis says a more sophisticated understanding of these risks, supported by its eight-point digital infrastructure risk framework, can help organizations optimize insurance programs, reduce unnecessary spend and give lenders and investors greater confidence that coverage aligns with actual exposures. Risk engineering and resilience investments can often reduce overall risk more effectively than simply increasing insurance limits. Resilience investments can improve insurance and financing outcomes By assessing natural hazards and climate risk early in the development lifecycle, data center owners and developers can incorporate resilience measures ...
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