Market Update: Insurance, Capital and Risk Across the Energy Transition

The energy transition is reshaping risk profiles across mining, renewables and oil & gas at the same time as the global insurance market itself is shifting, according to speakers at the Renewable Energy and Natural Resources Insights Forum in Sydney in March 2026. A panel of Aon’s global and regional leaders shared a pragmatic view of where they consider capacity, pricing and underwriting discipline to be heading – and what that could mean for asset owners and investors navigating a volatile and complex environment. This market update is a summary of the views expressed by that panel.

Their overarching message was cautiously optimistic: the market has moved past the peak of hardening conditions, but discipline, data and early engagement matter more than ever.

A global market that is stabilising – not complacent

Across global insurance markets, capital levels have largely strengthened following improved underwriting results and higher investment yields. Treaty renewals have been broadly positive and, while large natural catastrophe losses continue to make headlines, attachment points have typically shifted higher, with many insurers feeling somewhat insulated from balance sheet shock.

For energy and natural resources, this marks a meaningful inflection point. After several years of rapid premium increases and tightening terms, the market is now entering a softening phase. The panel considered that capacity is generally returning, competition is increasing and insurers are again looking to grow market share – particularly in portfolios that demonstrate strong risk management fundamentals.

However, this is not a return to the loose conditions of the past. The frequency and severity of secondary perils – such as hail, flood and wildfire – continue to rise, with direct relevance for renewable assets. Insurers appear to be recalibrating rather than retreating: sharpening their view of which risks they want to support and on what terms.

Renewables: differentiated risk, differentiated outcomes

In renewables, underwriting appetite is becoming increasingly technology specific.

• Wind: Proven wind assets in non-catastrophe zones remain attractive to many insurers. Well-performing, de-risked portfolios with strong data on availability and loss experience are seeing improved competition for capacity.
• Solar: In contrast, solar – particularly in high hail or storm-exposed regions – continues to face scrutiny from many insurers due to recent loss experience. Solar panel fragility, mounting design and local weather volatility will all likely come under the microscope.
• Battery energy storage systems (BESS): Battery systems are emerging as an area of insurer interest, but with nuance. Containerised, tested systems are viewed far more favourably than large, non-containerised installations, where thermal runaway and fire propagation remain key concerns.

For developers and asset owners, the message is clear: design, certification and operational controls materially influence insurability. Choices made at concept and procurement stage – from technology selection to enclosure, fire protection and site layout – can have an impact upon pricing, deductible and capacity outcomes.

Insurers are also typically paying closer attention to contractor quality and governance. Losses linked to inexperienced contractors have driven underwriters to look beyond corporate names to the track record of project directors and delivery teams. In a softening market, execution risk still matters; strong governance and demonstrable experience are increasingly decisive in securing favourable terms.

Mining and oil & gas: transition, not exit

For mining and oil & gas, the panel’s discussion reinforced that insurers are not stepping away from these sectors, but they are reframing how they engage.

Energy transition expectations are now increasingly embedded in underwriting conversations, with greater focus on asset life, end-of-life planning and portfolio strategy. Questions are shifting from “if” to “how” organisations are managing transition risk and opportunity.

Markets appear increasingly willing to support mixed portfolios that combine traditional and transition-enabling assets – for example, pairing conventional extraction with investments in critical minerals, decarbonisation projects or low-carbon infrastructure – provided the risk story is coherent and transparent.

At the same time, captive structures and alternative risk financing are gaining attention as tools to:

• Manage volatility in a still-evolving market
• Retain and reward good risk performance
• Access reinsurance capacity more efficiently
• Support long-term transition strategies

Used effectively, these structures can help organisations take a more strategic view of risk across both legacy and transition assets.

What this means for decision makers

Across all sectors, the panel suggests that the opportunity to businesses is clear but conditional. A more competitive insurance environment creates scope for improved pricing and terms, yet those benefits will accrue fastest to organisations that can articulate their risk profile with clarity and confidence.

The panel highlighted three clear themes:

• Start early. Early engagement with insurers and brokers is now critical, particularly for complex or first-of-a-kind projects. Bringing underwriters into the conversation during design and procurement could materially improve outcomes.
• Elevate data and insight. Robust data on asset performance, loss history, contractor capability and climate-related exposures is increasingly a prerequisite for attracting capacity. The quality of data and narrative around it often separates average programmes from market-leading ones.
• Connect transition and risk. A clear view of how technology choices, location and climate risk intersect – and how these are being actively managed – is now a key to securing support for both traditional and transition-enabling assets.

Key takeaways

• The market is softening, not loosening. Capacity appears to be returning and pricing pressure may be easing, but underwriting discipline remains firmly in place.
• Technology differentiation matters. Wind, solar and batteries are typically being assessed very differently, with design, location and loss history shaping outcomes.
• Secondary perils are a structural issue. Hail, flood and wildfire risk are now central to renewable underwriting, not peripheral considerations.
• People and execution risk count. Contractor experience and governance are increasingly decisive in securing favourable terms.
• Transition is an underwriting lens, not a barrier. Insurers are supporting energy transition pathways where risk is clearly understood and managed.

To explore how these market dynamics could affect your portfolio – and how to turn them into an advantage, visit our Renewables Insurance and Risk Management page or complete the short contact form to speak with an Aon specialist.

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These insights were originally shared at Aon’s 4th Renewable Energy Insights Forum in Sydney in March 2026.