Swiss Re Institute projects that renewable energy could generate up to $26bn in insurance premiums in underwriting year 2030 amid increasing investment in greener energy.
According to Swiss Re’s report, Market perspectives: exploring the state of play in the energy transition, Asia-Pacific is expected to account for about 28% of that total, or up to $7.4bn — the second-highest share globally, next to Europe at 31%, generating estimated premiums of up to $8.3bn from renewable energy.
The report added that within Asia-Pacific, solar could contribute up to $2.1bn, wind up to $2bn, and hydro up to $2.8bn. China alone is projected to deliver 42% of Asia’s renewable premiums (up to $3.1bn, or 12% of global), driven mainly by solar at around $1bn.
In Europe, growth is expected to be driven by wind (up to $4.1bn, 50% of total), mainly onshore, with Germany expected to account for close to 19% of renewable premiums from Europe, followed by the UK, France, and Spain.
This comes as global investments in energy transition, climate mitigation, and adaptation are projected to exceed $80tn by 2040, according to Swiss Re projections based on International Energy Agency (IEA) data.
Many of these investments, even when described under broad climate labels, are tied directly to energy generation and sit under insurers’ construction, power and utilities, and renewable energy portfolios, the report said.
Commenting on the report, Swiss Re Head Engineering and Nuclear Jimmy Keime said: “As the global energy transition continues to accelerate, it is drawing sustained investment into green infrastructure and technologies. Amid this changing landscape, our analysis suggests that industry players should not approach renewables as a commoditised or fully standardised risk class.”