Overall industry pace of insuring renewables needs to at least double to meet 2030 Net Zero benchmarks, finds Insure Our Future.
Chinese insurance companies are reshaping the global renewable energy insurance landscape, with three top insurers capturing over $200 million in new premiums between 2023 and 2024, according to a new analysis by Insure Our Future.
The analysis, ‘Renewables Gallop as Fossil Fuels Stall’, reveals a race to insure the fast-growing renewable energy market, with Chinese insurers PICC, Ping An, and Yingda Taihe demonstrating more than 20% inflation-adjusted growth that only a handful of other companies globally, such as AXA and AXIS Capital, matched. PICC also had the highest total renewable premiums at an estimated $485 million.
Download the report: https://www.urgewald.org/sites/default/files/media-files/IOF_MonteCarloBriefing_090125_Digital.pdf
The global renewable insurance market has grown 9% annually since 2020, climbing from $5.65 billion to $8 billion of gross direct written premium (GDPW) by 2024 in real terms. The fossil fuel insurance sector contracted by roughly 2% each year over the same period. The contrast highlights the energy transition underway, even as the fossil fuel market size remains more than three times larger than that of renewables, and the pace of annual growth in renewable premiums is still half of an 18% benchmark that the IEA 2030 net zero pathway suggests may be required.
“Chinese insurers are building deep expertise in understanding modern renewable project risks and returns, reflecting China’s impressive buildout. While this confers competitive advantages, there’s also tremendous opportunity for international collaboration — combining Chinese scale, speed, and experience with the power of global risk-sharing, standards, and capital markets,” said Dr. Muyi Yang, Senior Energy Analyst, Asia at Ember Energy.
“Working together in this way creates real win-wins, unlocking more financing and building confidence to triple installed renewables capacity by 2030 worldwide. This opportunity is large enough for multiple winners, and global insurers and reinsurers moving quickly enough today will reap the benefits,” he added.
Europe’s three biggest renewable energy underwriters, Allianz, AXA, and Zurich, collectively underwrote $141 million in new renewable premiums from 2023 to 2024, with AXA taking the lead share of $65 million. Allianz had the highest 2024 total among European companies with $390 million, with Zurich and AXA coming in at $320 and $315 million, respectively.
US insurers have substantial ground to make up if they are to benefit from the fast-growing renewable opportunity. Despite worsening climate losses and industry concerns[1], no major US insurer added more than $25 million in renewable premiums last year. The top 10 renewable underwriters in 2024 included two North American companies – AEGIS from Bermuda, with $330 million in premiums, and Canadian insurer Fairfax, with $270 million– having gained $41 million and $38 million in new premiums, respectively, from the previous year.
Across the world, companies remained heavily tied to fossil fuel coverage, with AEGIS as the single largest fossil fuel underwriter globally. No major company other than Italian insurer Generali has yet adopted an explicit policy to limit LNG expansion, which poses a major threat to future insurability and profitability because of extreme climate risks. Despite mounting evidence of fragile demand, the gas industry is doubling down on new LNG supply, which could lock in climate risk for decades, and further exacerbate insurability concerns already stressing markets and societies today.
“Although the insurance market is moving in the right direction, fossil fuels are still insured much more than renewables. Companies such as Allianz and Munich Re should use the opportunities insurance solutions for renewables offer much more consistently than they have done to date and promote market growth that way. However, if they cling on to their fossil fuel insurance business, they increase the risk of a climate-induced market collapse,” said Regine Richter, Finance Campaigner at Urgewald.
Aligning with the Paris Agreement's 1.5-degree Celsius goal requires meeting 2030 net-zero benchmarks, a target that demands diverting risky new coal, oil, gas and LNG coverage to help expand renewables. Global (re) insurer and broker Howden has called on the (re)insurance sector to take a central role in de-risking the climate transition.[2] It estimates that delivering on commitments in Energy, Road Transport, and Buildings – accounting for more than 90% of pledged investment – will demand insurance coverage of as much as $10 trillion worldwide by 2030.
“If we are serious about managing the catastrophic risks of fossil-fueled extreme weather, the renewable underwriting market must expand at least 18% annually through 2030. The good news is that several insurers are already proving this is possible, and companies at Monte Carlo need to divert risky new LNG coverage and seize renewable growth opportunities that accelerate the energy transition while also serving their bottom line,” said Risalat Khan, Senior Strategist, Insure Our Future Campaign.
The analysis of 45 major energy insurers was released ahead of the Rendez-Vous de Septembre (RVS) gathering at Monte Carlo Bay, where industry leaders debate risks and opportunities for the sector.
METHODOLOGY NOTE
The analysis uses gross direct premiums written estimates from Insuramore, a recognized insurance market intelligence provider, covering the period from 2020 to 2024. Figures are inflation-adjusted to constant 2024 dollars using IMF data. Renewable energy includes solar, wind, hydro, batteries, and grid infrastructure, while excluding nuclear, bioenergy, and hydrogen. Given limited public disclosure, figures represent Insuramore’s midpoint estimates subject to inherent data limitations, and are published for informational purposes in the public interest.
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