Chinese insurance providers are increasingly prominent in the global renewable energy insurance sector, according to new research from Insure Our Future.
The report, “Renewables Gallop as Fossil Fuels Stall,” indicated that three major Chinese insurers – PICC, Ping An, and Yingda Taihe – secured more than $200 million in additional renewable energy premiums between 2023 and 2024.
These firms experienced inflation-adjusted growth rates above 20%, a level of expansion matched by only a few international competitors, including AXA and AXIS Capital. PICC led the group with an estimated $485 million in total renewable premiums.
Since 2020, the worldwide renewable insurance market has grown at a compound annual rate of 9%, with gross direct written premiums rising from $5.65 billion to $8 billion by 2024.
Meanwhile, insurance for fossil fuel projects has contracted by about 2% annually. Despite this shift, fossil fuel insurance still accounts for more than three times the premium volume of renewables.
The current growth in renewable premiums remains below the 18% annual rate suggested by the International Energy Agency (IEA) as necessary to meet 2030 net-zero targets.
Dr. Muyi Yang, senior energy analyst for Asia at Ember Energy, noted that Chinese insurers are rapidly developing expertise in assessing the risks and returns associated with modern renewable energy projects, a trend that mirrors the country’s significant expansion in this sector.
“While this confers competitive advantages, there’s also tremendous opportunity for international collaboration – combining Chinese scale, speed, and experience with the power of global risk-sharing, standards, and capital markets,” he said.
He added that the scale of this opportunity allows for multiple participants to benefit, and that insurers and reinsurers who act quickly will be well positioned to take advantage.
Allianz reported the highest overall renewable premium volume among European carriers at $390 million, followed by Zurich and AXA with $320 million and $315 million, respectively.
In contrast, US-based insurers have not matched this pace. No major US insurer added more than $25 million in renewable premiums last year.
The list of top renewable underwriters in 2024 included two North American firms: AEGIS, headquartered in Bermuda, with $330 million in premiums, and Canada’s Fairfax, with $270 million. Both companies increased their renewable portfolios by over $35 million compared to the previous year.
Despite these developments, insurers globally remain significantly exposed to fossil fuel risks. AEGIS remains the largest underwriter of fossil fuel projects.
Among major insurers, only Generali of Italy has implemented a policy to restrict underwriting for new LNG projects, a sector identified as carrying substantial climate and insurability risks.
The report highlighted that achieving the Paris Agreement’s 1.5°C target will require the insurance industry to shift capacity away from fossil fuels and toward renewable energy.
Howden, a global (re)insurance broker, estimates that insurance coverage of up to $10 trillion will be required by 2030 to support investments in energy, transport, and buildings.
Risalat Khan, senior strategist for the Insure Our Future campaign, emphasised that addressing the severe risks posed by fossil fuel-driven extreme weather will require the renewable energy insurance sector to grow by at least 18% each year through 2030.
“The good news is that several insurers are already proving this is possible, and companies at Monte Carlo need to divert risky new LNG coverage and seize renewable growth opportunities that accelerate the energy transition while also serving their bottom line,” he said.
The findings are based on gross direct written premium estimates from Insuramore, adjusted to 2024 dollars, and were released ahead of the Rendez-Vous de Septembre (RVS) conference in Monte Carlo, where industry leaders are expected to discuss sector challenges and opportunities.
The Insure Our Future analysis aligns with the “Renewable Energy Market Review 2025” from Willis, a WTW business, which noted that global insurance capacity for renewables remains high, contributing to soft market conditions and downward pressure on premiums.
Insurers are maintaining a cautious approach to underwriting new technologies, particularly in the Asia-Pacific region, where high capacity and limited loss activity have influenced pricing.
Emerging technologies such as floating solar photovoltaics (FPV), hydrogen projects, battery energy storage systems (BESS), and advanced turbines are becoming more prevalent in project development pipelines.
These technologies introduce new risk considerations, especially in Southeast Asia, where natural catastrophes such as typhoons and flooding are persistent concerns.
According to the International Renewable Energy Agency (IRENA), Asia added over 421 GW of new renewable capacity in the past decade, accounting for nearly three-quarters of global growth and bringing the region’s total to over 2,380 GW.
Countries such as China, India, Japan, South Korea, and ASEAN members are scaling up solar, wind, hydro, and hybrid systems.
Floating solar is gaining traction in regions with limited land availability, with ASEAN governments supporting these projects through tenders and regulatory initiatives. Developers are increasingly installing floating solar systems on reservoirs and coastal waters.
