Renewable Energy Insurance Market Size & Share 2026-2035

Renewable Energy Insurance Market Size

The renewable energy insurance market was estimated at USD 8.9 billion in 2025. The market is expected to grow from USD 10.8 billion in 2026 to USD 58.5 billion by 2035, at a CAGR of 20.6%, according to a recent study by Global Market Insights Inc.

• The growing investment in renewable energy is driving the need for renewable energy insurance. Natural hazards such as typhoons, earthquakes and monsoons are the reasons why renewable energy insurance is needed. Its diverse geography places energy assets at risk. For instance, seasonal risks impact coastal wind farms in the Philippines and solar farms in India, leading to production losses and damages to the assets, creating the need to engage insurance services that offer a buffer against these random risks, allowing business to continue.

• For instance, according to IEA, in 2025, the European Union plans to increase its investment in clean energy, approaching a pledge of USD 390 billion. Public, private and private equity investors are investing in solar and wind farms, as well as battery storage. These valuable assets need coverage against risks comprising of natural hazards, equipment breakdown and construction delays, increasing insurance demand to protect these investments, making projects more bankable and appealing to financiers.  

• Renewable energy insurance is policy for renewable energy projects to reduce the financial losses due to operational, natural and technology risks. It protects against risks of physical and equipment damage, natural disasters, construction delays and disruptions, business interruption and liability. Insurance is critical to project developers, investors and operators to protect the financial viability and risk mitigation for renewable energy projects.

• The renewable energy insurance market was valued at USD 6.9 billion in 2022 and grew at a CAGR of 9% through 2025. Climate change is increasing the risks for energy developers to take insurance. Floods, hurricanes, and wildfires are increasingly severe, and affect renewable energy projects. Environmental damage and operational losses are common in solar, wind energy, and hydroelectric systems, and insurance services are in high demand, as they offer protection, reparation costs, business interruption and liability coverage.

• In addition, increasing regulatory and policy mandates are driving the service adoption. Regulatory authorities are enacting legislation that mandates developers to purchase certain types of insurance to receive permits or incentives. These regulations ensure projects adhere to safety and compliance requirements, contributing to enhance business case.

• For reference, in April 2025, Miller secured a USD 2.3 billion insurance policy in April 2025 for the world's largest battery energy storage system project in the Philippines, further confirming the increasing scale and complexity of renewable‑energy risk transfer. The placement underscores the growth in the maturity of co‑located solar and battery storage facilities, which need robust insurance to address emerging technical and operational risks.

Renewable Energy Insurance Market Trends

• The growing adoption of smart technologies, such as Internet of Things (IoT) sensors, drones and artificial intelligence (AI) analytics in renewable energy systems is influencing risk. This offers real-time tracking, maintenance and analytics for insurers to assess risks. Better monitoring of assets creates fewer unknowns and claims, enabling affordable insurance.

• The digitization is allowing technology companies to work with insurance companies to enable new insurance solutions for a new energy economy. Insurance companies are turning to partnerships as a key strategy for growth in the renewable energy sector. In addition, regulatory regimes are adapting to promote green insurance products, incentivizing insurers to innovate. This policy-insurance synergy is driving take-up, as project developers seek regulatory compliance and risk mitigation in a growing renewable industry.

• Rising emphasis on ESG (Environmental, Social, Governance) is leading to the need for renewable energy insurance in ESG investment. There is a need for transparency, resilience and sustainability in energy projects, and insurance is in ESG strategies. Insurers provide products that promote sustainable technologies and practices. This is changing insurance models, as insurers take climate-friendly measures, and complement the industry.

• Growing recognition of asymmetric risk is encouraging insurers to consider parametric insurance, which pays claims based on a threshold of the diameter of a hailstone or its kinetic energy. In addition, developers are using automated stows to reduce losses. The loss ratio-specialty reinsurance cycle is driving up premiums but is creating a demand for specialty insurance products.

• Growing sustainable bond financing, likely to remain close to USD 1 trillion per year, is driving banks and asset managers to seek insurance against risks of stranded assets and regulatory change. Moreover, increasing regulatory uncertainty, such as subsidies and carbon pricing, is prompting insurers to offer combined property-transition insurance triggering due to financial losses. These not only protect cash flow but also support ESG compliance, turning insurance from a construction risk to a sustainable investment and regulatory adaptation instrument.

• For reference, in December 2025, Munich Re has announced new 2030 climate targets as part of its Ambition 2030 strategy, with tougher reduction targets for its insurance, reinsurance and investment businesses, while sticking to its long‑term net‑zero target for 2050. The strategy includes substantial reductions in emissions related to thermal coal and stricter constraints on oil and gas, facilitating a transition towards lower‑emission and renewable‑energy‑compatible underwriting practices.

Renewable Energy Insurance Market Analysis

• Based on technology, the industry is segmented into solar PV, wind, hydropower and others. The wind renewable energy insurance market holds a share of about 40% in 2025 and is projected to grow at a growth rate of over 20% by 2035.

• The growing installation of large-scale wind farms, offshore and remote from population centers, has led to increased exposure to mechanical failures, blade breakage and gearbox problems. These components are costly to replace, and can result in long periods of downtime, impacting power generation and revenue streams, which will improve the outlook for service providers offering dedicated insurance products to cover breakdown, business interruption and performance guarantees.

• The solar technology segment is set to exceed USD 20 billion by 2035. The growing adoption of solar PV systems across various geographical areas has exposed them to natural risks such as fires, hail and floods. Globally, 2.7 GW of solar capacity and about 1.25 million solar modules were damaged by hail between 2019 and 2025, with a gross payout of approximately USD 340 million. These can cause significant physical damage and outages, leading to significant losses and enhancing the business opportunities for insurance providers.

• For illustration, Aon launched the low‑carbon transition framework in November 2025, to help insurers seize the fast-growing opportunities in renewable energy insurance, with premiums set to reach over USD 9 billion by 2030. The framework helps insurers to align underwriting strategies with new clean‑energy technologies such as hydrogen, battery storage and renewable energy, and enhance risk management through new products such as parametric weather and forced‑outage coverage.

• The hydropower renewable energy insurance industry was valued at USD 842.9 million in 2025. The growing deployment of hydropower as a reliable renewable energy source has led to the development of large dams and reservoirs, which are at risk of damage, siltation and equipment failure. These may cause delays, repairs and environmental damage and create a demand for insurance services to offer specialized insurance for civil works, machinery and business interruption to cover these operational risks.

• The rising integration of renewable energy in the utility operations leads to complexities in grid and asset management. These include risk related to intermittent supply, grid stability and grid integrity, resulting in a demand for insurance against issues such as operational, cyber security and liability risk for distributed energy resources. Furthermore, utilities require insurance that covers downtime and revenue loss from outages and failures. The renewable energy transition is driving the use of insurance to manage risk.

• Commercial and industrial renewable energy insurance was estimated at USD 1.9 billion in 2025.  The increase in the installation of commercial and industrial solar PV, wind and energy storage systems to cut energy costs and achieve sustainability targets will boost the business outlook. This valuable equipment is at risk of fire, theft, breakdowns and storms, creating a demand for insurance services to manage these risks to preserve these assets and increase the business outlook.

• The residential renewable energy insurance industry is set to grow at a rate of 21.5% from 2026 to 2035. The increased use of rooftop solar systems in the residential sector is leading to the insurance service demand to provide coverage against damage, theft and breakdown. The growing investment by homeowners in the solar PV systems ranging from USD 10,000 to 30,000 justifies the need for protection.

• Moreover, insurance is needed to offset risks of damage from hail & fire, and grid instability, which can result in repair costs and lost energy production. Renewable energy insurance is a critical element of home energy resilience, with insurers providing coverage for equipment, installation issues and performance warranties.

• The U.S. dominated the renewable energy insurance market in North America with around 80% share in 2025 and generated USD 1.9 billion in revenue. The increasing frequency and intensity of natural disasters, such as hurricanes, wildfires, and hailstorms have led to substantial impacts on renewable energy assets.

• Renewable energy assets are more vulnerable to natural disasters and are experiencing greater loss ratios and reinsurance premiums. This has led to a need for developers and owners of these assets to purchase insurance for physical damage, business interruption and parametric loss.

• Furthermore, the rise in the need for ESG-compatible infrastructure and green finance is prompting U.S. utilities and companies to adopt renewable energy insurance as part of their risk mitigation plans. Managing the risks associated with changes in policy, stranded assets, and carbon prices, more than 90% of the Fortune 500 is reporting ESG measures, and insurers are responding with products that cover these risks. Such policies ensure financial resilience and regulatory compliance in the face of changing climate policy, contributing to improving the service business outlook.

• North America industry is set to grow at a rate of over 17.5% by 2035. The rising deployment of mega solar, wind and energy storage projects in the region is driving the demand for insurance products. With ambitious clean energy targets in the U.S. & Canada along with 100% carbon-free electricity by 2035, developers are investing in big projects that need to be insured against construction delay, equipment breakdown and performance risks. This elevates the demand for insurance products to mitigate complex risks through the project lifespan, including risks of grid interconnection and revenue loss, and thus improves their revenue potential.

• Europe renewable energy insurance market is projected to surge USD 18 billion by 2035. Increasing investment in offshore wind farms and interconnectors is creating larger and more complex renewable energy projects. These projects are exposed to distinct risks such as marine perils, inter-jurisdictional regulatory frameworks, and expensive equipment which prompts insurers to develop marine, construction and operational insurance products for offshore and transboundary projects.

• Rising investment in renewable energy across emerging markets is fueling demand for insurance solutions that address local risks throughout the Asia Pacific region. These are quickly adding solar and wind capacity, often in regions with weak infrastructure and high risk from natural disasters. Insurance is being taken to protect against construction delays, equipment breakdowns and power fluctuations. IRENA reports that Asia contributed more than 60% of global renewable energy expansion over the past few years, and that risk mitigation by insurance is crucial to project bankability and financing.

Renewable Energy Insurance Market Share

• The top 5 players in renewable energy insurance industry are Allianz Global Corporate & Specialty, Munich Re, PICC, Swiss Re and Zurich Insurance Group contribute around 54% of the market share in 2025.

• The companies are tailoring products to specific renewable technologies, including solar, wind, hydro and battery storage. This includes parametric insurance, performance warranties, and transition risk insurance. Insurers are tailoring policies to mitigate specific risks such as damage from hailstorms in solar PV, or turbine failure in offshore wind. This approach helps insurers target developers and investors looking for tailored risk management, while allowing them to stand out from the competition.

• Moreover, insurers are entering into alliances with renewable energy developers, asset managers and technology vendors. Partnerships with data analytics companies and IoT solutions enable insurers to include real-time monitoring and predictive maintenance. These partnerships enhance underwriting and claims processing and integrate insurance into the renewable energy value chain.

Renewable Energy Insurance Market Companies

Major players operating in the renewable energy insurance industry are:

• AEGIS

• AIG

• Allianz

• Aon

• AXA

• AXIS Capital Holdings

• Canopius

• Chubb

• Descartes Underwriting

• Energy Insurance Mutual

• Fairfax Financial Holdings

• Gallagher

• HDI Global

• Horton Group

• kWh Analytics

• Liberty Specialty Markets

• Markel Group

• Marsh & McLennan Companies

• Miller

• Munich Re

• Ping An Insurance (Group) Company of China

• PICC

• RSA Insurance

• Swiss Re

• Tokio Marine Kiln

• Travelers

• Willis Towers Watson (WTW)

• Zurich Insurance

• Allianz Global Corporate & Specialty provides insurance for renewable energy projects across the project lifecycle comprising of construction, operation and decommissioning. This includes property damage, equipment breakdown, start-up delays, loss of revenue for wind, solar and other technologies. The company offers risk engineering & technical services to mitigate risks and increase projects' sustainability.

• Munich Re delivers insurance and reinsurance for renewable energy with a focus on innovation and new technologies. It provides insurance against construction and operational risks, performance risks and weather risks of wind, solar and energy storage projects. It also develops parametric and structured risk products and technical advice to ensure new technologies are bankable and insurable.

• PICC offers renewable energy insurance services for wind, solar and hydropower projects. It typically provides construction all risks insurance, operational risks insurance and liability insurance. PICC plays a key role in project finance and risk management of large renewable energy projects, in particular projects related to national green energy transition.

• Swiss Re provides insurance and reinsurance solutions for renewable energy projects through the construction and operational phases. It delivers risk engineering and innovative insurance products such as parametric insurance to address the variability of renewable energy generation. It provides property damage, business interruption and weather risk insurance, utilizing advanced risk models and analytics.

• Zurich Insurance Group provides a wide range of insurance products for renewable energy assets, including solar, wind, and other low carbon technologies. It provides insurance for construction and operational risks and liabilities, and global insurance programs for international projects. Zurich combines underwriting and engineering expertise to support clients with risks, enhance asset efficiency and facilitate the transition to sustainable energy.

Renewable Energy Insurance Industry News

• In January 2026, Willis Towers Watson acquired San‑Francisco‑based broker Newfront to boost its U.S. middle‑market brokerage and enhance its specialty services in technology‑driven risk advice. This acquisition augments data‑driven broking capabilities to support a complex and technical risk segment that overlaps with renewable‑energy insurance. Newfront’s automation‑centric approach and industry expertise will now feed into the capabilities of WTW's Risk & Broking and Health, Wealth & Career segments, adding capacity to support clients in growing industries.

• In December 2025, Chubb boosted its renewable energy insurance coverage to meet the growing demand for protection in the region's burgeoning renewable energy industry. Already accounting for more than 60% of local energy generation, it now provides coverage for civil liability, business interruption, natural catastrophe and project-finance risks. This enhanced coverage enables Chubb to play a vital role in supporting the growth and resilience of large‑scale renewable projects.

• In November 2025, PICC has partnered to offer global product‑liability insurance protection for international renewable‑energy storage projects, underpinning risk‑management practices in major project deployment areas. Under this partnership, GSL ENERGY's lithium batteries, inverters, and complete energy‑storage systems cover for liability. This agreement boosts compliance for multi‑country clean‑energy projects and builds investor confidence by creating consistent insurance protection for large‑scale renewable‑energy storage projects.

• In October 2025, Tokio Marine spended over USD 10 billion on international acquisitions, including in Australia, a targeted growth market for its business lines including renewable‑energy, climate and technical risks underwriting. The company is looking to build its specialty capabilities including renewable‑energy risk underwriting supported by its 2023 establishment of GCube by pursuing bolt‑on or smaller acquisitions in profitable areas such as energy, infrastructure and engineering risks.

The renewable energy insurance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2022 to 2035, for the following segments:

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Market, By Technology

• Solar PV

• Wind

• Hydropower

• Others

Market, By Coverage Type

• Property insurance

• Liability insurance

• Business interruption insurance

• Equipment breakdown insurance

• Others

Market, By End use

• Utility

• Commercial & industrial

• Residential

The above information has been provided for the following regions & countries:

• North America

  • U.S.

  • Canada

• Europe

  • UK

  • Germany

  • Poland

  • Spain

  • France

  • Italy

• Asia Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

  • Taiwan

• Rest of World