The renewable energy insurance market has shown robust growth in recent years, projected to increase from $17.01 billion in 2023 to $17.97 billion in 2024, with a CAGR of 5.6%. This historic growth can be linked to government incentives, increased investments, heightened awareness, environmental concerns, and support from the financial sector. In the coming years, this market is expected to grow to $22.49 billion by 2028, at a CAGR of 5.8%. The anticipated growth during this forecast period will be fueled by the acceleration of renewable energy initiatives, climate change mitigation efforts, growing market demand, global energy policy changes, and the expansion of insurance products. Major trends anticipated in the forecast period include technological innovations, enhanced risk management tools, advancements in data analytics, the integration of climate risk models, and an improved customer experience.
Major Driver In The Renewable Energy Insurance Market
The rising demand for energy infrastructure investments is expected to accelerate the growth of the renewable energy insurance market in the near future. Energy infrastructure investments involve channeling capital toward the development, maintenance, and enhancement of facilities and systems that generate, transmit, and distribute energy. This demand stems from the escalating global energy consumption due to population growth and industrialization, necessitating the expansion and modernization of energy systems. Additionally, the transition toward renewable energy sources and carbon-reducing policies is encouraging investments in sustainable energy infrastructure. Renewable energy insurance is vital as it mitigates financial risks, ensures project viability, and instills investor confidence in renewable energy projects. For example, in May 2023, a report from the International Energy Agency revealed that annual investments in renewable energy hit $659 billion in 2023, reflecting a 10.6% rise from $596 billion in 2022. Therefore, the increasing demand for energy infrastructure investments is set to significantly drive the growth of the renewable energy insurance market.
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Renewable Energy Insurance Market Competitive Landscape
Major companies operating in the renewable energy insurance market are Munich Reinsurance Company, Assicurazioni Generali S.p.A., Swiss Reinsurance Company Ltd, Zurich Insurance Group Ltd, Chubb Limited, Aviva plc, The Travelers Companies Inc., Mapfre S.A., The Hartford Financial Services Group Inc., SCOR SE, Marsh McLennan Companies Inc., QBE Insurance Group Limited, Aon plc, CNA Financial Corporation, Markel Corporation, Willis Towers Watson Public Limited Company, Arthur J. Gallagher & Co., AXA XL Group, RSA Insurance Group plc, Liberty Specialty Markets, Tokio Marine HCC, Beazley plc, Hiscox Ltd, BKS Partners Inc., The Horton Group Inc.
Key Renewable Energy Insurance Market Trend
Major companies in the renewable energy insurance market are focusing on adopting data analytics, such as data-powered insurance, to deliver more tailored coverage solutions. Data-powered insurance involves the use of advanced data analytics and big data to accurately assess risks, determine premiums, and create customized insurance solutions. For example, in November 2021, GCube Insurance Services, Inc., a UK-based provider of insurance services for renewable energy projects, introduced a new data-powered insurance solution to support the renewable energy sector in partnership with Clir, a company dedicated to optimizing returns from renewable energy assets. This innovative offering employs AI-driven analytics and comprehensive data sets to provide improved terms and reduced premiums for wind and solar operators. By integrating a wind portfolio’s data onto Clir’s platform, GCube can assess an asset’s meteorological and operational loads, component health, reliability, and the effects of current operations and maintenance, allowing for refined underwriting pricing and more competitive terms for lower-risk projects.
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Global Renewable Energy Insurance Market Segmentation
The renewable energy insurance market covered in this report is segmented –
1) By Type: Fossil Fuels, Sustainable And Renewable Energy, Nuclear Power
2) By Risk Type: Natural Disasters, Political Risks, Cyber Risks
3) By Application: Residential, Commercial
By Geography:The regions covered in the renewable energy insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Europe was the largest region in the renewable energy insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The Renewable Energy Insurance Global Market Report 2024 furnishes information about the global renewable energy insurance market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
