Insurance rates for renewable energy projects are expected to continue falling throughout 2026, as strong market capacity and competition among insurers persist, according to data from Willis.

The broker’s latest Renewable Energy Market Review suggests pricing for Tier 1 risks may decline by 20% to 30%, while Tier 2 risks could see reductions of up to 10% to 15%. Loss-affected programmes are likely to face more varied renewal outcomes.

Insurer profitability has remained strong, according to the report, with average combined ratios below 90%, and further rate softening is expected throughout the year.

Renewable energy underwriting is becoming more technically demanding as projects grow in scale and complexity. Insurers are paying closer attention to supply chain dependencies, project delays and recovery planning, while energy security concerns and geopolitical tensions continue to influence risk profiles.

Rob Hale, global power and renewable energy leader at Willis Natural Resources, said: “Competitive advantage is shifting towards renewable energy projects that can demonstrate strong engineering standards, robust maintenance practices and credible, data-driven risk insights. Risk is shifting from isolated component failures to systemic dependency risks, with a clear need for companies to map and manage recovery timelines, contingency planning, as well as the alignment between procurement, contracts and insurance structures.

"The next phase of underwriting will be defined less by price alone and more by the quality of information, analytics and long-term risk management strategies.”

Willis believes the sector outlook is positive, supported by expected growth in battery energy storage and solar projects across North America, Europe, the Middle East and Asia.

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