For UK insurance brokers, renewable energy insurance was rated as the most promising new product with the largest growth potential. These issues of climate change and sustainability have really changed the game. Consequently, insurers and energy providers have been becoming more and more positive on this niche.
That changed during the first nine months of 2024, when renewable energy sources reclaimed the top spot. In fact, they represented almost 90% of all new energy generation in the United States jointly! This incredible shift reflects the increasing importance of renewable energy. As in recent years, solar power once again continues to dominate, accounting for almost three-quarters of these new installations. As more industries look to clean energy, the demand for smart, comprehensive insurance solutions designed for this evolving market is increasing.
In the UK, brokers are especially bullish on the future for renewable energy insurance. Their hope is that as more public power providers invest in sustainable technologies, the demand for this specialized coverage and expertise will grow. This ongoing trend is a powerful example of the shifting realities of our energy supply. It illustrates the critical efforts that insurance can support to accelerate the rapid expansion of the renewable energy industry.
Renewable energy’s contributions to electricity grids are increasing rapidly around the globe. In the UK we see bold moves to decarbonize energy systems. As countries fulfill promises to move away from carbon-intensive fuels, use of renewables will continue to grow in importance. As innovators and entrepreneurs push their boundaries, the insurance industry needs to evolve to insure emerging risks created by these technologies.
Renewable energy insurance is more than simply keeping up with the demand of the day. It’s a win-win long-term play for insurers and energy companies. As they attempt to direct the complicated landscape of renewable projects such as technological innovations and navigating through regulatory needs, all-inclusive coverage is a must. This insurance product will help cover the risks involved with equipment breakdown, property loss, equipment failure, and liability that come with renewable energy installations.