Swiss Re highlights $26b insurance potential from clean energy

Global renewable energy capacity will almost double to 8.5 terawatts by 2030. 

Swiss Re said the accelerating global energy transition is reshaping the risk landscape for investors and insurers, with total investment in energy transition, climate mitigation, and adaptation projected to exceed $80t by 2040.

In its latest report, Market perspectives: exploring the state of play in the energy transition, Swiss Re Institute estimates that global renewable energy capacity will almost double from 4.4 terawatts in 2024 to 8.5 terawatts by 2030. 

This growth could generate as much as $26b in annual insurance premiums.

Jimmy Keime, head of Engineering and Nuclear at Swiss Re, said that whilst investment in green infrastructure continues to grow, renewables should not be viewed as a commoditised or fully standardised risk class.

Swiss Re noted that Asia-Pacific and Europe are driving the expansion, with changing technologies and weather-related volatility shaping new exposure patterns. 

As renewable energy portfolios mature, insurance needs are shifting from construction coverage to long-term operational protection, supported by standalone renewable energy treaties. 

Facultative reinsurance remains an option for larger or less established risks.

The report also highlighted new claims trends, including extreme-weather damage, battery-storage fires, and mechanical failures, which are prompting closer alignment between underwriting practices and real-world performance data.