Global Renewable Energy Insurance Market Overview:
Renewable Energy Insurance Market Size was estimated at 10.63 (USD Billion) in 2022. The Renewable Energy Insurance Market Industry is expected to grow from 11.6 (USD Billion) in 2023 to 25.3 (USD Billion) by 2032. The Renewable Energy Insurance Market CAGR (growth rate) is expected to be around 9.05% during the forecast period (2024 - 2032).
Key Renewable Energy Insurance Market Trends Highlighted
The renewable energy insurance market is growing because of the increasing demand for renewable energy and concerns about climate change. As a result, there is an opportunity to develop more specific insurance policies relating to these assets. Sustained intent for innovative renewable energy insurances that are specially designed for solar, wind or geothermal is expected in the coming years.
Moreover, partnerships with renewable energy developers/manufacturers could offer growth prospects for insurers. The advancement in insurance technologies has brought forth, among others, drone applications for risk assessment and parametric insurance products, which are based on predetermined triggers rather than actual losses. Furthermore, the market has recently begun prioritizing sustainability and ESG (environmental, social and governance) issues, which have led to a rise in demand for insurance related to the development of renewables.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Renewable Energy Insurance Market Drivers
Growing Demand for Renewable Energy
One of the main drivers contributing to the growth of the Renewable Energy Insurance Market Industry is the increasing demand for renewable energy sources, such as solar and wind power. With more and more governments and businesses worldwide implementing policies and various types of initiatives aimed at reducing carbon emissions and moving towards a more sustainable way of living, the number of renewable energy projects is bound to continue growing. Considering the risks involved in such projects, such as natural disasters, failures of equipment, and delays in construction, the demand for ways to protect them through the use of insurance solutions is also rapidly increasing.
Increasing Complexity of Renewable Energy Projects
Renewable energy projects are becoming more complex with multiple technologies and components. In addition, these projects involve high risks which are hard to insure. As a result, different insurance products and services are developed by insurers to satisfy the requirements of the renewable energy industry. Thus, the insurance offers cover all risks as the risks peculiar to renewable energy projects, such as performance guarantees, cyber risks, or supply chain problems.
Evolving Regulatory Landscape
The renewable energy regulatory landscape is in a constant state of flux, with new policies and regulations being introduced to advance the development and deployment of renewable energy technology. However, the insurance requirements for renewable energy projects have also been influenced by the onset of new regulations. As a result, insurer companies must follow the evolution of the regulatory landscape to ensure that their products accommodate their customers’ needs and are in compliance with the latest regulations. An additional effect of the evolving regulatory landscape is that insurers can develop insurance packages that help renewable energy companies navigate new regulations that impact them while also managing the risks associated with the new set of regulations.
Renewable Energy Insurance Market Segment Insights:
Renewable Energy Insurance Market Coverage Type Insights
The Renewable Energy Insurance Market is segmented by Coverage Type into Property Insurance, Liability Insurance, Business Interruption Insurance, Equipment Breakdown Insurance, and Cyber Insurance. Among these segments, Property Insurance is expected to hold the largest market share in 2023, and it is anticipated to continue its dominance throughout the forecast period. The growth of this segment is expected to be driven by the increasing number of renewable energy projects being developed around the world. These projects require specialized insurance coverage to protect against the risks associated with renewable energy generation, such as weather damage, equipment failure, and business interruption. Liability Insurance is another important segment of the Renewable Energy Insurance Market. This segment provides coverage for third-party claims resulting from accidents or injuries that occur during the construction or operation of renewable energy projects.
The growth of this segment is being driven by the increasing awareness of the potential risks associated with renewable energy projects and the need to protect against legal liability. Business Interruption Insurance is also a significant segment of the Renewable Energy Insurance Market. This segment provides coverage for lost income and expenses incurred as a result of a business interruption caused by a covered event. The growth of this segment is being driven by the increasing dependence of businesses on renewable energy sources and the need to protect against the financial impact of a business interruption. Equipment Breakdown Insurance is another critical segment of the Renewable Energy Insurance Market. This segment provides coverage for equipment repair or replacement that breaks down or fails. The growth of this segment is being driven by the increasing complexity and sophistication of renewable energy equipment and the need to protect against the financial impact of equipment failure. Cyber Insurance is a novel segment of the Renewable Energy Insurance Market. This segment covers cyberattacks and data breaches that can force the operation of renewable energy projects to a stop. The growth of this segment is being driven by the increasing frequency and sophistication of cyberattacks and the need to protect against the financial impact of a cyberattack.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Renewable Energy Insurance Market Technology Insights
The Technology segment of the Renewable Energy Insurance Market is expected to witness significant growth in the coming years, driven by the increasing adoption of renewable energy sources worldwide. In 2023, the Solar PV segment accounted for the largest share of the market and is projected to maintain its dominance throughout the forecast period. The Wind segment is expected to grow at a steady pace, supported by government initiatives and technological advancements. Hydropower is another major segment and is expected to witness growth in regions with abundant water resources. Geothermal and Biomass segments are also expected to contribute to the overall growth of the Technology segment. The Renewable Energy Insurance Market revenue is expected to reach USD 14.7 billion in 2024 and is projected to grow at a CAGR of 9.4% from 2024 to 2030.
Renewable Energy Insurance Market Project Size Insights
The Renewable Energy Insurance Market is segmented by project size into small-scale projects (1 MW or less), medium-scale projects (1-10 MW), and large-scale projects (10 MW or more). Small-scale projects accounted for the largest share of the market in 2023 and are expected to continue to do so over the forecast period. This is due to the increasing popularity of rooftop solar systems and other small-scale renewable energy projects. Medium-scale projects are also expected to experience significant growth as businesses and municipalities look to reduce their carbon footprint. Large-scale projects are expected to account for a smaller share of the market but will still play an important role in the transition to a clean energy future.
Renewable Energy Insurance Market End-Use Sector Insights
The End-Use Sector segment of the Renewable Energy Insurance Market is categorized into Residential, Commercial, Industrial, and Utility. Among these, the industrial sector is projected to hold the largest market share over the forecast period. The increasing demand for renewable energy in industries to reduce carbon footprint and comply with government regulations is driving the growth of this segment. Moreover, the rising adoption of renewable energy technologies, such as solar PV systems and wind turbines, in industrial facilities is further contributing to the market growth.
The commercial sector is expected to witness significant growth due to the increasing adoption of renewable energy systems in commercial buildings to reduce operating costs and enhance sustainability. The residential sector is also expected to grow steadily as homeowners become more aware of the benefits of renewable energy and seek to reduce their energy bills. The Utility sector is likely to play a crucial role in the integration of renewable energy into the grid, driving the demand for renewable energy insurance solutions.
Renewable Energy Insurance Market Distribution Channel Insights
The distribution channel segment of the Renewable Energy Insurance Market plays a crucial role in connecting insurance providers with policyholders. Insurance brokers, agents, direct insurers, and online platforms are the primary channels through which renewable energy insurance products are distributed. Insurance brokers act as intermediaries between policyholders and insurance companies, offering expert advice and tailored solutions. Agents represent specific insurance companies and promote their products to potential clients. Direct insurers sell policies directly to customers without involving intermediaries, providing greater control over policy terms and pricing. Online platforms have emerged as a rapidly growing distribution channel, offering convenience, transparency, and a wide range of options for policyholders. The Renewable Energy Insurance Market is expected to witness a surge in demand for online platforms, driven by the increasing adoption of digital technologies and the growing preference for self-service insurance solutions.
Renewable Energy Insurance Market Regional Insights
The Renewable Energy Insurance Market is segmented into North America, Europe, APAC, South America, and MEA. The North American region is expected to hold the largest market share in the Renewable Energy Insurance Market due to the increasing adoption of renewable energy sources such as solar and wind power. The European region is also expected to witness significant growth in the Renewable Energy Insurance Market due to the growing demand for renewable energy and supportive government policies. The APAC region is expected to be the fastest-growing region in the Renewable Energy Insurance Market due to the increasing investments in renewable energy projects in countries such as China and India. The South American and MEA regions are also expected to witness steady growth in the Renewable Energy Insurance Market due to the increasing awareness of the benefits of renewable energy and supportive government policies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Renewable Energy Insurance Market Key Players And Competitive Insights:
Players in the Renewable Energy Insurance Market industry are working fast to gain a competitive edge over their peers with innovative products and services. The companies operating in the Renewable Energy Insurance Market industry are also focussing on broadening their global footprint and increasing their share through partnerships. Given the dynamism of the Renewable Energy Insurance Market industry, it is evident that the market will be shaken by new players and existing players.
Among the pioneers in the Insurance business within the Renewable Energy Insurance Market is Allianz Global Corporate Specialty. The company has a variety of renewable power assets under insurance, which can identify their solutions and take the renewables assignment. AGCS has incorporated all the risks associated with renewable power projects including utility-scale solar, wind, and hydro to construction and operational risks. The strength of the firm is also its global presence and technology, which allows it to adapt insurance solutions to renewable energy projects anywhere in the world. AGCS's investment in the development of sustainable energy sources has a positive impact on the growth of renewable energy sources around the world.
There is another founder among the companies working on insurance solutions in the Renewable Energy Insurance Market, which is Zurich Insurance. Their course is also to stand by companies with insurance solutions for renewable energy projects for developers, contractors and investors. The Swiss company offers a broad suite of insurance plans that cover property and liability risks as well as project standby. The firm is also distinguished by its understanding and commitment in order to put renewable energy projects into operation. At the same time, the company is committed to the renewable energy market and is capable of effectively insuring the different operating models of renewable energy facilities.
Key Companies in the Renewable Energy Insurance Market Include:
Renewable Energy Insurance Industry Developments
The Renewable Energy Insurance Market is projected to grow significantly in the coming years, driven by increasing demand for renewable energy sources and supportive government policies. In 2023, the market was valued at USD 11.6 billion and is expected to reach USD 25.3 billion by 2032, exhibiting a CAGR of 9.05%.
In January 2023, Munich Re launched a new insurance product specifically designed for offshore wind farms, providing coverage for risks such as construction delays, equipment damage, and loss of revenue.
In March 2023, Aon and Willis Towers Watson merged to create a global insurance brokerage giant offering a wide range of renewable energy insurance solutions.
Governments worldwide continue to implement supportive policies to promote renewable energy adoption, such as tax incentives, subsidies, and feed-in tariffs. These policies create a favorable investment climate for renewable energy projects and drive demand for insurance coverage.
Renewable Energy Insurance Market Segmentation Insights
Renewable Energy Insurance Market Coverage Type Outlook
Renewable Energy Insurance Market Technology Outlook
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Solar PV
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Wind
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Hydropower
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Geothermal
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Biomass
Renewable Energy Insurance Market Project Size Outlook
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Small-Scale Projects (1 MW or less)
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Medium-Scale Projects (1-10 MW)
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Large-Scale Projects (10 MW or more)
Renewable Energy Insurance Market End-Use Sector Outlook
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Residential
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Commercial
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Industrial
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Utility
Renewable Energy Insurance Market Distribution Channel Outlook
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Insurance Brokers
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Agents
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Direct Insurers
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Online Platforms
Renewable Energy Insurance Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
10.63 (USD Billion) |
| Market Size 2023 |
11.6 (USD Billion) |
| Market Size 2032 |
25.3 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
9.05% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Swiss Re, Marsh McLennan, Lloyd's of London, Munich Re, XL Catlin, Everest Reinsurance, Chubb, Willis Towers Watson, Allianz, Zurich Insurance Group, AXA XL, American International Group (AIG), Liberty Mutual Insurance, RSA Insurance Group |
| Segments Covered |
Coverage Type, Technology, Project Size, End-Use Sector, Distribution Channel, Regional |
| Key Market Opportunities |
Growing demand for renewable energy projects.Increasing regulatory support for renewable energy. Technological advancements in renewable energy systems |
| Key Market Dynamics |
Increasing Adoption of Renewable Energy Sources.Growing Awareness of Risks Associated with Renewables.Stringent Regulations and Government Incentives.Availability of Specialized Insurance Products.Technological Advancements |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Renewable Energy Insurance Market size is expected to reach USD 11.6 billion in 2023 and is projected to grow at a CAGR of 9.05% from 2024 to 2032, reaching USD 25.3 billion by 2032.
The North America region is expected to hold the largest market share in the Renewable Energy Insurance Market due to the increasing adoption of renewable energy sources and supportive government policies in countries such as China, India, and Japan. Europe is also expected to witness significant growth due to the growing demand for renewable energy and stringent environmental regulations.
Renewable energy insurance covers a wide range of applications, including solar photovoltaic systems, wind turbines, biomass power plants, and geothermal energy projects. It provides protection against risks such as property damage, business interruption, and liability.
Some of the key players in the Renewable Energy Insurance Market include XL Catlin, AIG, Munich Re, Allianz, and Zurich Insurance Group. These companies offer a range of insurance products and services tailored to the specific needs of the renewable energy industry.
The Renewable Energy Insurance Market is witnessing several key trends, including the increasing adoption of renewable energy sources, the growing demand for specialized insurance products, and the emergence of new technologies such as blockchain and IoT.
The Renewable Energy Insurance Market faces challenges such as the high cost of insurance premiums, the lack of standardized insurance products, and the limited availability of data on renewable energy risks.
The Renewable Energy Insurance Market presents several opportunities for growth, including the increasing demand for renewable energy, the development of new insurance products, and the adoption of new technologies.
The key factors driving the growth of the Renewable Energy Insurance Market include the increasing adoption of renewable energy sources, the growing demand for specialized insurance products, and the supportive government policies in various countries.
The potential risks associated with the Renewable Energy Insurance Market include the high cost of insurance premiums, the lack of standardized insurance products, and the limited availability of data on renewable energy risks.
The future prospects of the Renewable Energy Insurance Market are positive due to the increasing adoption of renewable energy sources, the growing demand for specialized insurance products, and the supportive government policies in various countries.
