Insurance Insider: Energy market braces for loss from collapse of ‘The Beast’ Alaska oil rig

A section of the rig – which is insured for $200mn – collapsed on an ice road.

The London insurance market is expecting a substantial claim following the collapse of a section of the largest mobile land drilling rig in the US, as it was transported along a road in Alaska, Insurance Insider can reveal.

The section of the Doyon 26 oil rig – colloquially known as ‘The Beast’ – toppled over on 23 January, breaking out in a fire which was quickly contained.

The rig is owned by Doyon Drilling and was contracted by ConocoPhillips as part of a drilling exploration on Alaska’s North Slope.

It is insured for $200mn in a Marsh-brokered deal led by AdA Underwriters and syndicated in the London market.

It is understood that an assessment of the size of the loss has not yet taken place, although images from the incident suggest substantial damage.

The loss hits the energy market as it navigates a difficult period of high competition and falling rates.

In its most recent energy market review in November, broker Willis said that rate reductions were running at 5–10% on average.

And on some placements where business has been marketed to new leaders, rate reductions of 30–40% could be achieved.

However, in a class of business which has historically experienced volatile claims activity, it has been nearly a decade since a market loss exceeded $1bn.

Sources said it was unlikely that the Doyon event would be impactful enough to move the market.

Whilst the upstream market has experienced limited claims activity, the downstream energy market experienced a year of punishing claims in 2025.

During 2025 the downstream market suffered over $4bn of losses, including the Martinez refinery near San Francisco, the Bayernoil refinery in Germany, and Mol Energy’s Danube Refinery in Hungary.

AdA Underwriters, Marsh and ConocoPhillips declined to comment. Doyon Drilling was contacted for comment.