Asian insurers tighten renewable project cover

Large utility schemes still receive competitive terms when designs and data meet underwriter standards.

As Asia is driving 74.2% of new global renewable energy capacity in 2025 by adding 513.3 gigawatts, the insurance industry is shifting from a standard paperwork requirement into a crucial strategic tool needed to secure project funding.

According to the Renewable Energy Market Review by insurance broker WTW, the rapid growth of solar, wind, hydropower, battery storage, and floating solar projects across Asia has made risk management far more complex.

Whilst the Asian insurance market remains generally competitive and coverage levels have stabilised for large, well-managed utility projects, insurance companies are becoming much more selective about what they cover. 

Insurers are closely watching climate volatility, supply chain disruptions, and major subsidy changes that threaten project timelines.

Specifically, China's decision to phase out export tax rebates for solar products in April 2026, followed by battery products through 2027, is expected to raise global prices for these parts. 

For projects across the Asia-Pacific region, these rising costs and potential shipping delays mean developers face higher financial risks if their projects are delayed. 

As a result, insurance underwriters are heavily focusing on "delay in start-up" coverage and whether the compensation periods are long enough to cover prolonged setbacks.

Local Asian insurance companies are taking on more of these risks, but developers still rely heavily on international reinsurance markets to back massive, highly complex, or disaster-prone projects.

Sam Liu, WTW’s head of Renewable Energy in Asia, noted that project developers and lenders must build insurance into their planning from day one. 

He stated that the projects securing the best insurance terms in 2026 will be those that present transparent data, strong technical designs, realistic delay plans, and clear coordination between their buying contracts and risk management strategies.