Energy and power insurance to reach $10.2b by 2029

Significantly, Asia-Pacific is expected to post the fastest growth.

The global energy and power insurance market is projected to increase from $7.29b in 2024 to $7.82b in 2025, according to the Business Research Company. 

The sector is forecast to reach $10.20b in 2029, representing a compound annual growth rate of 6.9% over the period.

Recent growth has been driven by higher demand for cover for traditional power plants, increased investment in fossil fuel infrastructure, expanded natural disaster protection, and stricter regulations across the energy sector. Financing activity for energy projects has also supported the market.

Looking ahead, demand for insurance linked to smart grid systems and electric vehicle infrastructure is also expected to rise.

The study notes ongoing developments in risk modelling, digital claims processing, parametric insurance and blockchain-based policy management. 

North America was the largest market in the previous year, whilst Asia-Pacific is expected to post the fastest growth during the forecast period.