The large-scale blackout that swept Spain and Portugal in April 2025 is prompting insurers to take a closer look at how businesses prepare for power failure, according to a report from HDI Global.
As outages become more likely, driven by technical issues, extreme weather and cyber threats, insurers are urging policyholders to treat blackout risk as a core part of business continuity planning.
Philipp Glanz (pictured above), managing director at HDI Risk Consulting, which is part of HDI Global, said energy disruption is no longer a rare event. For insurers, the implications are broad as unplanned outages can trigger business interruption claims, equipment damage and delayed recovery timelines.
Insurers are now pressing clients to go beyond basic backup systems. While many companies have generators and UPS units in place, few test them under real conditions or model how long operations can continue if the grid fails. Glanz said insurers want to see evidence of shutdown protocols, restart plans and clear priorities for maintaining critical functions.
Some industries face sharper exposure. In manufacturing, chemicals, food logistics and pharmaceuticals, power loss can cause permanent damage or spoilage, which leads to more complex and costly claims.
People risk is also rising on the agenda. During prolonged outages, employees may be unable or unwilling to remain at work, adding pressure to maintain operations. Some businesses are starting to include staff welfare in crisis planning, recognising that continuity depends as much on people as it does on systems.
Communication is another concern. A blackout can mean limited access to data, delays in reporting losses and breakdowns in decision-making.
As claims exposures evolve, insurers are stepping up their pre-loss engagement. HDI Global said demand is growing for technical risk reviews, scenario testing, and blackout-specific planning. Glanz noted that the insurer's role is shifting from reactive to proactive: “Clients want support before something happens, not just after.”
With energy stability under pressure and regulatory expectations rising, insurers are expected to take a tougher line on how blackout risk is managed. Firms that can show they’re prepared may find it easier to secure capacity and reduce recovery time if the lights go out again, HDI said.
