The accelerating global energy transition is set to transform the risk landscape, according to the latest analysis from Swiss Re. It estimates that total investment in energy transition, climate mitigation and adaptation could exceed £64tn by 2040, signalling a shift from experimental projects to large-scale deployment.

Jimmy Keime, head engineering and nuclear at Swiss Re, said: "As the global energy transition continues to accelerate, it's drawing sustained investment into green infrastructure and technologies. Amid this changing landscape, our analysis suggests that industry players should not approach renewables as a commoditised or fully standardised risk class."

The report, Market perspectives: Exploring the state of play in the energy transition, projects that renewable energy capacity will almost double from 4.4 terawatts in 2024 to 8.5 terawatts by 2030. This expansion could generate up to £21bn in annual insurance premiums, with Asia-Pacific and Europe leading the growth. Swiss Re highlighted that shifting technologies and weather-driven volatility are creating new exposures and losses, which in turn demand detailed risk assessment.

As renewable portfolios mature, insurance needs are evolving from the construction phase toward long-term operational resilience, typically supported by standalone renewable energy treaties, while facultative arrangements remain an option for larger or less proven risks.

The report also noted emerging claims trends, including extreme weather damage, battery-storage fires and mechanical failures, stressing the importance of stronger links between underwriting and real-world data.

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