Johnston, RI (July 15, 2026) \u2013 Aging equipment, protracted replacement times and a variety of risk-management shortcomings threaten efforts to meet rising global power demand fueled by AI data centers and broad-based electrification, according to a new report by commercial property insurer FM.<\/p>\n
The report, Understanding Power Generation: Loss Trends and Predictive Analytics<\/strong><\/em>, details power-generation systems\u2019 chief vulnerabilities, most prevalent causes of loss and recommended practices for improving resilience.<\/p>\n \u201cPower generation is a pillar of national and global security,\u201d said Stuart Keller, chief engineer at FM. \u201cLosses within this sector reverberate beyond individual facilities, affecting macroeconomic performance, energy availability, the resilience of critical infrastructure and local communities. As demand increases and system complexity grows, maintaining operational efficiency and proactively managing risk are essential.\u201d<\/p>\n Mechanical and electrical breakdowns are the primary drivers of loss, accounting for more than 70% of all loss events in power generation and over 80% of total financial impact annually, the report says. Gas turbines are the single largest source of property damage<\/em> across the sector. Gas turbines and transformers are major drivers of business interruption<\/em> losses in large part due to ongoing supply chain constraints. The lead times for replacement units are often measured in years.<\/p>\n The report is informed by seven decades of FM client loss data in the power generation sector.<\/p>\n From 2021 to 2025 alone, FM clients have suffered 427 power-generation losses totaling approximately US$3.7 billion in gross losses, with steam turbines and gas turbines consistently representing the most severe and costly sources of loss.<\/p>\n Causes of loss include:<\/p>\n More than a quarter of FM client losses (approximately 27%) originate from the 2% of client locations previously identified as most predisposed to a loss. To avoid such problems, FM provides strategic risk-management guidance informed by science, research, engineering, site visits, close OEM relationships, real-world data and predictive analytics.<\/p>\n Accordingly, the report details the business value of client vigilance, including proactive inspection, testing, monitoring, maintenance, housekeeping, contingency planning and scenario-based training.<\/p>\n \u201cOur experience conclusively demonstrates that proactive loss prevention leads to materially fewer and less severe losses,\u201d said Keller. \u201cNot only do clients strengthen their operational resilience, they protect their long-term reliability and profitability.\u201d<\/p>\n Download the report from FM: Understanding Power Generation: Loss Trends and Predictive Analytics<\/strong><\/em><\/a>.<\/p>\n Established nearly two centuries ago, FM is a leading mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its policyholder-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world\u2019s largest organizations, including one of every four Fortune 500 companies. They work with FM to better understand the hazards that can impact their business continuity to make cost-effective risk management decisions, combining property loss prevention with insurance protection. For more information, please visit www.fmglobal.com<\/a>.<\/p>\n Source: FM Global<\/i><\/p>\n Tags: analytics<\/a>, FM Global<\/a>, power risk<\/a>, predictive modeling<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":" FM Report: \u201cUnderstanding Power Generation: Loss Trends and Predictive Analytics\u201d Johnston, RI (July 15, 2026) \u2013 Aging equipment, protracted replacement times and a variety of risk-management shortcomings threaten efforts to meet rising global power...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[1],"class_list":["post-25249","post","type-post","status-publish","format-standard","hentry","tag-news"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/25249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=25249"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/25249\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=25249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=25249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=25249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Where the vulnerabilities lie<\/strong><\/h4>\n
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Loss-prevention impact<\/strong><\/h4>\n
About FM<\/b><\/h4>\n