Insurance Market Conditions for the Renewable Energy Sector
Snapshot
- Market Dynamics and Capacity Growth: The renewable energy sector is experiencing significant growth, driven by global efforts to combat climate change. The insurance market has seen a rise in reinsurer capital, reaching $700 billion in Q3 last year1, driven by strong underwriting results and improved investment yields.
- Challenges in Underwriting and Experience: Natural catastrophe exposures remain a concern, with significant events like the California wildfires and Bangkok earthquake impacting the market. Insurers are focusing on maintaining deductible levels and deploying capacity on high natural catastrophe-exposed risks.
- Softening Market and Competitive Edge: The APAC region is entering a softening phase, with capital continuing to flow into the market and premium rates starting to fall2. Insurers are positioning themselves to maintain market share while focusing on technology risk and insurance appetite.
The renewable energy sector is undergoing a transformation, driven by global initiatives to combat climate change and transition to sustainable energy sources. This shift has profound implications for the insurance market, which plays a pivotal role in supporting the growth and resilience of renewable energy projects. As natural catastrophe exposures continue to pose challenges, the insurance market is adapting to meet these demands with increased reinsurer capital and strategic underwriting practices.
To read more about the current market conditions and insights into the insurance landscape for renewable energy, download the article below.
Read more
This content originates from a session delivered at Aon Renewable Energy Insights Forum 2025 on 18 March 2025, in our Aon Sydney office.
If you have any more questions about the insurance market for renewable energy, please contact Richard Nunny, Head of Renewables Energy, APAC at richard.nunny@aon.com or Pat Behan, Head of Renewables Energy, Australia at pat.behan@aon.com.
References
[1] 26303-Reinsurance-Market-Dynamics-2025-Report_Final.pdf
[2] Richard Nunny, Aon Renewable Energy Insights Forum 2025, 18 March 2025
