Insurers see renewables opportunity

The increased need for cover during the shift to clean energy offers big new growth opportunities to the global insurance industry, particularly in Asia, according to reinsurance giant Swiss Re.

In a new report Building a Sustainable Energy Future, Swiss Re highlights the important role it says insurers must play in providing “new growth opportunities” for the renewables industry.

Under Swiss Re’s best-case scenario, “low-carbon sources” (including nuclear) will comprise 92% of the global energy mix by 2050 – though it stresses that this outcome would require “a successful mix of political, social and technological factors”.

The report predicts annual losses in the total energy sector could reach $42bn by 2030, opening the way for insurers to provide financial protection as well as risk management expertise to help avoid these losses in the first place.

“Insurers should support the further development of low carbon-intensive power production. They need to be innovative and provide solutions along the whole value chain,” says Agostino Galvagni, chief executive at Swiss Re Corporate Solutions.

It suggests the “changing energy landscape” will provide new opportunities for insurers. The Asia-Pacific region is expected to drive growth in the energy sector and vacuum up 50% of total annual global energy-related financing by 2030.