Energy Insurance Market Overview, Investment Trends and Analysis by Region, 2024 Update

Reasons to buy the ‘Energy Insurance’ market report:

• Gain key insights, current and future growth trends, and an overview of the energy insurance market.
  • Insights on key market trends in the energy insurance market.
  • Insights on key growth and profitability challenges in the energy insurance market.
• Explore a comparative analysis of leading energy insurance providers.

• Benchmark the in-depth analysis and competitive landscape of the top regional markets.

How is our ‘Energy Insurance’ report unique from other reports in the market?

• Make strategic business decisions using in-depth historical and forecast market data related to the global and regional energy insurance market.
• Analyse market information and insights into the global energy insurance market.
• Understand the key dynamics, trends, and growth opportunities in the global and regional energy insurance market.
• Identify key regulatory developments impacting market growth.
• Identify growth opportunities in key regional markets.

We recommend this valuable source of information to anyone involved in:

• ​​​​Insurance Companies – Leaders and Start-Ups
• Brokers/Agents, Financial Advisors; Underwriters/Insurers/Reinsurers
• Insight Managers/Marketing Executives/Strategy Teams/Investment Analysts and Portfolio Managers
• Business Development and Market Intelligence
• Professional Services – Investment Banks, PE/VC Firms
• M&A/Investment, Management Consultants and Consulting Firms

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Energy Insurance Market Report Overview

High loss exposure in the energy sector, mandatory liability insurance clauses, and environmental liability will keep the demand for the energy insurance market persistent. Developments in hydrogen technology present opportunities for insurers, as hydrogen is sought after in the industrial and transportation sectors as a clean and sustainable fuel option. As a result, investments in renewable sources such as wind and solar that use hydrogen technology are expected to gain momentum over 2024–28.

The energy insurance market insight analysis report provides in-depth market analysis, information, and insights into the global and regional energy insurance market. The report provides a detailed outlook of the Global Energy insurance market. It provides values for key performance indicators such as written premiums and claims during the review period (2019–23) and forecast period (2024–28).

Energy Insurance Market – Competitive Landscape

The key energy insurers in the energy insurance market are Marsh, Howden, Aon, and Zurich among others. In July 2024, Zurich Insurance introduced a hydrogen energy insurance facility for global blue and green hydrogen projects. Aon will act as the exclusive broker for this facility. Furthermore, in January 2024, Howden launched an insurance facility with SCOR Syndicate to cover CO2 leakage from commercial CCS units.

Energy Insurance Market by Key Players

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Energy Insurance Market Trends

With the growth of carbon capture technology, governments are emphasizing the need to pursue alternative and cleaner energy sources to mitigate carbon emissions. In addition,  major economies laying out their hydrogen plans are also emerging as one of the most prominent energy insurance market trends.

Carbon capture technology is gaining rapid acceptance in industrial decarbonization as it ensures the retention of existing facilities for economic development. The technology is comparatively more mature in the energy sector, where companies use it to curb process emissions from power plants, refineries, petrochemical plants, and hydrogen production units. For instance, the UK aims to establish four CCS unit clusters by 2030, which will capture 30MT of CO2 per year. Of these, it plans to install two clusters by 2025.

Energy Investment Trends

The key fuel types in the energy investment sector are oil, gas, coal, and clean fuels. The global energy transition presents a business opportunity for insurance in renewables amid declining investment in oil and gas. As per the IEA, global investments in energy are expected to exceed a significant value by 2024. Investments in fuel will account for a prominent share of total investments in 2024. Of this, oil’s share is expected to remain the highest.

Energy Insurance Market by Fuel Types, 2024 (%)

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Upstream Insurance Trends

Despite major loss events in 2023, upstream insurers’ technical results reached the lowest level since 2013 due to higher retention limits imposed by reinsurers.  Primary insurers underperformed in smaller accounts (including contractors all-risk—subsea) as losses were almost entirely borne by insurers due to high deductibles from reinsurers.

Soft market conditions in upstream energy are expected to persist over 2024 for large accounts with a good loss history.

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Downstream Insurance Trends

Downstream energy insurance underwriting is expected to stabilize over 2024, with good risks as well as LNG and midstream accounts poised to benefit from softening rates at renewal. In January 2024, reinsurance treaty renewals noted a flat to marginal increase for insurers due to lower losses in 2023. Nat cat events remained the biggest trigger for upward price movement by reinsurers. For primary insurers, property damage, and business interruption are expected to remain focus areas over 2024.

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Energy Insurance Market Regional Analysis

The key regions in the energy insurance market are Asia-Pacific, Europe, the Middle East and Africa, and the Americas.

Asia-Pacific: Energy sector investments in Asia-Pacific are expected to exceed a significant value in 2024 according to the IEA. In Japan, energy insurance is set to record a CAGR of more than 8% over 2024–28. Japan-based Sompo and Tokio Marine are prominent energy insurers with a strong global presence.

Americas: South and Central America is uniquely placed to take advantage of the increasing global demand for low-carbon hydrogen. The region is a global leader in terms of the proportion of renewable energy within its power generation mix, with renewables in South and Central America accounting for a prominent share of overall generation in 2023. This is expected to rise by 2035.

In Colombia, energy insurance recorded a CAGR of more than 9% during 2019–23. Growth in the power generation sector is expected to be challenged in Colombia due to climatic losses from El Nino, social issues, and regulatory delays, leading to hard market conditions.

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Scope

This report provides a comprehensive analysis of the global energy insurance market:

• It provides historical values for the global and regional energy insurance market for the report’s 2019–23 review period, and projected figures for the forecast period 2024–28.
• It offers a detailed analysis of the regional energy insurance market and market forecasts to 2028.
• It provides key market trends in the global energy insurance market.
• It provides rankings, premiums, and market share of top global and regional energy insurers and analyzes the competitive landscape.