General Insurance Article - $80 trillion energy transition to shape global risk markets


Swiss Re’s latest analysis shows how the accelerating global energy transition is reshaping the risk landscape for investors and insurers. Estimates show that by 2040, total investment into energy transition, climate mitigation and adaptation is expected to surpass USD 80 trillion[1], marking a shift from experimentation to large-scale deployment.

 Jimmy Keime, Head Engineering & Nuclear at Swiss Re, says: "As the global energy transition continues to accelerate, it's 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."

 The new report, “Market perspectives: exploring the state of play in the energy transition”, includes new projections from Swiss Re Institute, estimating renewable capacity to almost double from 4.4 terawatts (TW) in 2024 to 8.5 TW by 2030, generating up to USD 26 billion in annual insurance premiums[2]. Asia-Pacific and Europe are leading this expansion, while shifting technologies and weather-driven volatility drive new observed trends in exposures and losses which, in turn, require rigorous risk analysis.

 As renewable portfolios mature, we observe that insurance needs move from the construction-phase toward long-term operational resilience, supported by standalone renewable energy treaties (with facultative remaining an option for larger and less proven risks). Meanwhile, new claims trends observed in market data – including extreme-weather damage, battery-storage fires, and mechanical failures – are demanding tighter links between underwriting and real-world data.

 The full report is available here.
 
 
 [1] USD 80 trillion is the cumulated investment between 2023 and 2040. Source: Swiss Re projections based on figures from the International Energy Agency (IEA)
 [2] Source: Swiss Re Institute

  

 
  

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