Watt Now? Reinsuring the Renewable Energy Transition
Published
Our latest business intelligence report that examines the growth of the renewable energy sector and its associated opportunities and risks from a reinsurance perspective.
“Watt Now? Reinsuring the Renewable Energy Transition” underscores the pivotal role of the (re)insurance industry in supporting the global shift towards renewable energy, which is crucial for the longevity of the global economy and climate.
Key highlights
The substantial shift towards cleaner energy sources, driven by the declining costs of technologies like solar and wind, presents significant growth opportunities for the (re)insurance sector. The renewable energy insurance market is experiencing robust expansion, with notable premium potential in solar, onshore wind, offshore wind and battery energy storage systems (BESS).
(Re)insurance is essential to the energy transition – requiring transparency and collaboration among all stakeholders to ensure risks are appropriately placed and managed
Varied risks associated with onshore and offshore wind, solar, and BESS, bringing awareness to how manufacturers, producers, cedents, and reinsurers can navigate these challenges together.
Howden Re calls on reinsurers to refine their view of risk, offering bespoke solutions tailored to each generation technology’s specific challenges, characteristics, and construction needs. Cedents are encouraged to thoroughly articulate their exposure, considering the variable risks tied to construction lead times, asset design and environmental factors:
“The renewable energy sector is evolving rapidly, bringing a unique set of challenges and opportunities. Collaboration across the industry is vital to support the sustainable growth and resilience of renewable energy projects worldwide.” James Metcalf, Associate Director – Marine, Energy & Terror, at Howden Re, commented:
“The renewable energy sector is at a critical juncture. As we navigate the complexities of natural perils and evolving technologies, our focus remains on providing innovative and tailored risk management solutions to support the sustainable growth of this vital industry.” Simon Brooks, Managing Director – Marine, Energy & Terror, Howden Re,
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