Global Downhole Equipment Insurance Market Growth (Status and Outlook) 2026-2032
Description
The global Downhole Equipment Insurance market size is predicted to grow from US$ 432 million in 2025 to US$ 556 million in 2032; it is expected to grow at a CAGR of 3.3% from 2026 to 2032.
Downhole Equipment Insurance (often called Downhole Tool Insurance or Lost-in-Hole/LIH) is a specialty upstream insurance product that reimburses the replacement cost of scheduled downhole tools when they are lost, stuck, or damaged while operating below the rotary table in a pre-approved well. It is commonly purchased by tool rental companies, wireline/logging providers, directional drilling and MWD/LWD service firms, operators, and sometimes lenders to protect high-value bottom-hole assemblies (BHA) and related downhole equipment from the most frequent loss scenario—irretrievable loss due to sticking or parting in the wellbore. Coverage is typically structured by well/run with declared tool schedules and limits, and some programs charge premium only while the insured tools are “below rotary table (BRT).”
The Downhole Equipment Insurance market is a niche but essential premium pool within upstream energy insurance, built around protecting concentrated tool values used in drilling and evaluation workflows. Its demand is fundamentally volume- and complexity-driven: more wells drilled, longer laterals, harsher environments (HPHT, deepwater, complex trajectories), and higher reliance on expensive BHA electronics and rotary steerable systems increase the probability and severity of “lost-in-hole” outcomes, making insurance economically rational for service companies whose balance sheets cannot absorb frequent six- or seven-figure losses. On the supply side, capacity is usually delivered through specialist MGAs/program administrators and energy-focused carriers (including Lloyd’s placements), and the pricing/terms move with the broader upstream market cycle; recent broker commentary indicates a generally softening competitive environment across upstream property segments as capacity remains ample and buyers can improve terms when loss experience allows.
LPI (LP Information)' newest research report, the “Downhole Equipment Insurance Industry Forecast” looks at past sales and reviews total world Downhole Equipment Insurance sales in 2025, providing a comprehensive analysis by region and market sector of projected Downhole Equipment Insurance sales for 2026 through 2032. With Downhole Equipment Insurance sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Downhole Equipment Insurance industry.
This Insight Report provides a comprehensive analysis of the global Downhole Equipment Insurance landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyses the strategies of leading global companies with a focus on Downhole Equipment Insurance portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Downhole Equipment Insurance market.
This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Downhole Equipment Insurance and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Downhole Equipment Insurance.
This report presents a comprehensive overview, market shares, and growth opportunities of Downhole Equipment Insurance market by product type, application, key players and key regions and countries.
Segmentation by Type:
All-Risk Coverage
Named Perils Coverage
Segmentation by Coverage Trigger:
Lost-In-Hole (Irretrievable Loss)
Downhole Damage (Repairable)
Others
Segmentation by End User:
Oil & Gas Operators
Oil & Gas Contractors
Others
Segmentation by Application:
Onshore Oil Wells
Offshore Oil Wells
This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries
The below companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the company's coverage, product portfolio, its market penetration.
Transpac Managers
Iridium Risk Services
Travelers
Gallagher
AssuredPartners
Marsh
Great American Insurance Group
Bowen, Miclette & Britt Insurance Agency
Aon
WTW (Willis Towers Watson)
Howden
Amwins
Chubb
Please note: The report will take approximately 2 business days to prepare and deliver.
Downhole Equipment Insurance (often called Downhole Tool Insurance or Lost-in-Hole/LIH) is a specialty upstream insurance product that reimburses the replacement cost of scheduled downhole tools when they are lost, stuck, or damaged while operating below the rotary table in a pre-approved well. It is commonly purchased by tool rental companies, wireline/logging providers, directional drilling and MWD/LWD service firms, operators, and sometimes lenders to protect high-value bottom-hole assemblies (BHA) and related downhole equipment from the most frequent loss scenario—irretrievable loss due to sticking or parting in the wellbore. Coverage is typically structured by well/run with declared tool schedules and limits, and some programs charge premium only while the insured tools are “below rotary table (BRT).”
The Downhole Equipment Insurance market is a niche but essential premium pool within upstream energy insurance, built around protecting concentrated tool values used in drilling and evaluation workflows. Its demand is fundamentally volume- and complexity-driven: more wells drilled, longer laterals, harsher environments (HPHT, deepwater, complex trajectories), and higher reliance on expensive BHA electronics and rotary steerable systems increase the probability and severity of “lost-in-hole” outcomes, making insurance economically rational for service companies whose balance sheets cannot absorb frequent six- or seven-figure losses. On the supply side, capacity is usually delivered through specialist MGAs/program administrators and energy-focused carriers (including Lloyd’s placements), and the pricing/terms move with the broader upstream market cycle; recent broker commentary indicates a generally softening competitive environment across upstream property segments as capacity remains ample and buyers can improve terms when loss experience allows.
LPI (LP Information)' newest research report, the “Downhole Equipment Insurance Industry Forecast” looks at past sales and reviews total world Downhole Equipment Insurance sales in 2025, providing a comprehensive analysis by region and market sector of projected Downhole Equipment Insurance sales for 2026 through 2032. With Downhole Equipment Insurance sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Downhole Equipment Insurance industry.
This Insight Report provides a comprehensive analysis of the global Downhole Equipment Insurance landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyses the strategies of leading global companies with a focus on Downhole Equipment Insurance portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Downhole Equipment Insurance market.
This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Downhole Equipment Insurance and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Downhole Equipment Insurance.
This report presents a comprehensive overview, market shares, and growth opportunities of Downhole Equipment Insurance market by product type, application, key players and key regions and countries.
Segmentation by Type:
All-Risk Coverage
Named Perils Coverage
Segmentation by Coverage Trigger:
Lost-In-Hole (Irretrievable Loss)
Downhole Damage (Repairable)
Others
Segmentation by End User:
Oil & Gas Operators
Oil & Gas Contractors
Others
Segmentation by Application:
Onshore Oil Wells
Offshore Oil Wells
This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries
The below companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the company's coverage, product portfolio, its market penetration.
Transpac Managers
Iridium Risk Services
Travelers
Gallagher
AssuredPartners
Marsh
Great American Insurance Group
Bowen, Miclette & Britt Insurance Agency
Aon
WTW (Willis Towers Watson)
Howden
Amwins
Chubb
Please note: The report will take approximately 2 business days to prepare and deliver.
Table of Contents
102 Pages
- *This is a tentative TOC and the final deliverable is subject to change.*
- 1 Scope of the Report
- 2 Executive Summary
- 3 Downhole Equipment Insurance Market Size by Player
- 4 Downhole Equipment Insurance by Region
- 5 Americas
- 6 APAC
- 7 Europe
- 8 Middle East & Africa
- 9 Market Drivers, Challenges and Trends
- 10 Global Downhole Equipment Insurance Market Forecast
- 11 Key Players Analysis
- 12 Research Findings and Conclusion
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