Howden Re, the reinsurance and risk advisory arm of Howden, has published a report on the growth of the renewable energy sector and its associated opportunities and risks from a reinsurance perspective.

The publication – Watt Now? Reinsuring the Renewable Energy Transition – explores the pivotal role of the re/insurance industry in supporting the global shift towards renewable energy, which is widely seen as crucial for both the climate and the future of the global economy.

As governments worldwide increasingly incentivise renewable adoption in pursuit of energy security and a cleaner power system, Howden Re’s report forecasts that renewables will account for 74% of the growth in global primary energy consumption by 2030. This substantial shift towards cleaner energy sources, driven by the declining costs of technologies like solar and wind, presents significant growth opportunities for the re/insurance sector says Howden Re. It adds that the renewable energy insurance market is experiencing major expansion, with notable premium potential in solar, onshore wind, offshore wind, and battery energy storage systems.

James Metcalf, associate director for marine, energy and terror, at Howden Re, said: “The renewable energy sector is evolving rapidly, bringing a unique set of challenges and opportunities. Collaboration across the industry is vital to support the sustainable growth and resilience of renewable energy projects worldwide.”

The report outlines why re/insurance is essential to the energy transition, highlighting the need for greater transparency and collaboration among all stakeholders to ensure risks are appropriately placed and managed. It also sets out the varied risks associated with onshore and offshore wind, solar, and BESS, bringing awareness to how manufacturers, producers, cedents, and reinsurers can navigate these challenges.

Simon Brooks, managing director for marine, energy and terror at Howden Re, added: “The renewable energy sector is at a critical juncture. As we navigate the complexities of natural perils and evolving technologies, our focus remains on delivering innovative and tailored risk management solutions to support the sustainable growth of this vital industry.”

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