An oversupply of capacity is intensifying competition among insurers in the renewable energy market, continuing to drive pricing downward, according to the latest Renewable Energy Market Review from Willis.

Natural catastrophe losses remain a major concern in the space, as severe weather events are directly damaging assets and causing significant challenges, according to the broker and risk advisory.

Its review, published this week, outlines how innovation in peril diagnostics and broad parametric solutions is helping the market better manage volatility and uncertainty. Meanwhile, emerging technologies such as kinetic infrastructure, solar-integrated materials, nuclear fusion and gravity-based storage demonstrate the continued interest in reshaping the future energy landscape.

Steven Munday, global renewable energy leader, natural resources at Willis, said the market is advancing data and analytics, integrating renewable occupancy focused climate risk models and enhancing risk management tools to better assess and price risks associated with renewable energy projects.

“With more insurance capacity entering the market as insurers seek to capture growth in the renewable and clean energy sector and replace premium from shrinking opportunities in fossil fuel insurance lines, softer pricing, broader terms with cover innovation, lower deductibles in most product lines and regions are welcomed headlines for 2025,” he added.

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