APAC emerges as leader in renewables insurance

RE is projected to account for 45% of global electricity generation by 2030.

The renewables (re)insurance market is in an expansionary phase, influenced by growing global investments in clean energy projects, according to Gallagher Re.

Renewable energy (RE) is projected to account for 45% of global electricity generation by 2030, requiring over $2t in new investments, according to the International Energy Agency. 

This surge in RE development is creating substantial demand for financial protection, with Swiss Re estimating $237b in potential insurance premiums by 2035, Gallagher Re’s whitepaper “Insuring the Transition: Risks and Opportunities in RE“ said.  

The industry, supported by sufficient market capacity and reasonable profitability, is attracting new entrants eager to align with the transition to greener energy.  

Despite growth, the sector faces significant risks: project design errors, serial defects, extreme weather events, sabotage and geopolitical risks.

Asia Pacific has emerged as a hotspot for renewables insurance, driven by rapid industry growth in China and Japan's push toward floating offshore wind turbines. 

Cedants are also exploring standalone treaties for RE risks, signaling a shift toward specialised risk management.  

Whilst profitability in the renewables insurance market remains stable, recent claims—such as flood damage to solar power installations and tornado-related wind turbine losses in the US—highlight ongoing challenges. 

Nonetheless, the sector's premium growth aligns with the increasing number of wind farms, solar projects, and other renewable facilities entering operation.