Renewable Energy Insurance Faces Rising Competition, Pricing Pressure Globally

The renewable energy insurance market in 2025 is characterized by an oversupply of capacity, intensifying competition and driving premiums downward across most regions, including Australia, Asia-Pacific, and the UK. Insurers are becoming more selective due to increased claims from extreme weather events and evolving technology risks, with particular caution around natural catastrophe exposures, aging solar farms, bushfire- or cyclone-prone wind projects, and battery energy storage systems. Innovations in data analytics, climate risk modeling, and peril diagnostics are helping insurers better assess and manage these risks, while new technologies such as floating solar and kinetic infrastructure continue to reshape the sector. Despite softer pricing, insurers remain cautious, especially with untested renewable technologies, and regulatory and environmental liabilities are emerging as key areas for tailored insurance products. The Asia-Pacific region is seeing significant renewable capacity growth, driven by government support and technological innovation, but insurers there are particularly wary of climate-related catastrophes impacting project design and terms. Globally, renewable energy insurance is viewed as a high-growth product, second only to cyber insurance among UK brokers, reflecting the sector's critical role in the transition toward sustainable energy.