The renewable energy sector in Asia is undergoing notable shifts in insurance and risk management practices as regional deployment accelerates and new technologies introduce complex exposures.
This is outlined in the Renewable Energy Market Review 2025, published by Willis, a WTW business, which presents insights into market trends, technological innovation, and insurance readiness.
A key trend noted in the report is the sustained oversupply of insurance capacity, contributing to a continuation of soft market conditions.
Increased competition among insurers is placing downward pressure on premiums, even as underwriters maintain a cautious approach when evaluating novel energy systems.
The Asia-Pacific region mirrors these global conditions. Insurers operating in both upstream and downstream energy sectors are navigating pricing declines driven by high capacity and low loss activity in prior years.
According to WTW’s April 2025 Energy Market Review, downstream insurers saw reduced rate levels in 2024. However, early 2025 claims already exceed $1.5 billion, potentially influencing upcoming renewals. Upstream capacity, meanwhile, has increased by 5%, reinforcing soft conditions and prompting underwriters to take more prominent positions on policies.
New renewable technologies – including floating solar photovoltaics (FPV), hydrogen projects, BESS, and advanced turbine systems – are increasingly featured in regional project pipelines.
These systems carry new risk profiles, particularly in Southeast Asia, where climate-related events such as typhoons and flooding remain a primary concern for insurers.
Sam Liu, head of renewable energy, Willis Natural Resources, Asia, said choosing the right site is critical for floating solar.
“FPV projects face technical challenges, especially regarding floater design and the resiliency of anchoring and mooring systems, particularly in sites exposed to natural catastrophes. Site selection is therefore critical, as it directly impacts the overall system design. Extensive technical studies are therefore required to gather accurate environmental data and ensure the project is engineered for long-term performance and durability,” he said.
Liu added that while new players have increased available capacity, insurers remain selective. Constraints such as high catastrophe exposure and aggregation of insured assets are influencing terms and pricing for clean energy developers.
The International Renewable Energy Agency (IRENA) reported that Asia contributed over 421 GW of new capacity in the past decade, accounting for nearly three-quarters of global additions and pushing the region’s total to over 2,380 GW.
Nations including China, India, Japan, South Korea, and ASEAN members are scaling solar, wind, hydro, and hybrid systems that integrate energy storage or offshore components.
Floating solar in particular is gaining momentum in areas facing land-use competition. Governments across ASEAN are backing this approach through tenders and regulatory support, with developers pursuing installations on reservoirs and coastal waters.
Steven Munday, global renewable energy leader at Willis Natural Resources, said progress isn’t limited to traditional solar or wind.
“While global pressures endure, the next wave of innovation continues to push the sector forward into new and unchartered waters, low carbon power generation doesn’t stop with wind and solar. Different regions face intrinsic risks and opportunities, but the renewable energy sector as a whole can step into the future to deliver clarity and confidence,” he said.
