One market is set to surge, according to global brokerage WTW – and that market, is renewable energy.
In its annual Renewable Energy Market Review, the firm outlines that companies are increasingly looking to transition to a low carbon environment. The speed of growth, it states, is also prompting increased demand for building resilience against climate change.
“The renewable energy industry is transforming at a speed which can be difficult to track,” said head of global natural resources Graham Knight. “This can be seen in the record growth in solar PV and wind capacity additions - beating the previous year’s record - as well as the increasing interest from insurers in offshore wind and hydrogen, where synergies in environment and technology strategies are available. This creates an incredibly complex and fast evolving environment for the sector, so it is essential that organizations understand how to manage not only the speed of growth but also the emerging risks that arise, such as supply chain issues.”
Among the issues the report outlines are how the renewables insurance market will stabilize with low- to mid-single digit price increases. Some of the key challenges highlighted include the pace of technological change, aged assets, operation and maintenance, as well as contractor experience and natural catastrophe risk.