Hydrogen is expected to play a central role in the transition toward cleaner energy sources, with global demand projected to rise sharply in the coming decades.
According to Allianz Commercial, more than 60 governments have introduced hydrogen strategies, while planned projects worldwide have climbed to over 1,500 compared to about 200 in 2021, representing an increase of approximately 600%.
The Hydrogen Council and McKinsey estimate that investments of around $680 billion will be needed through 2030 to realize these initiatives, a scale that will likely drive a substantial rise in insurance demand. Europe leads current development activity, accounting for 617 announced projects and the largest share of planned investment at $199 billion.
Allianz notes that while hydrogen presents opportunities, its future growth will depend on a variety of external factors, including political and economic conditions, trade policies, and overall market demand.
Policymakers face pressure to address infrastructure development costs to ensure hydrogen can scale competitively against other energy sources. Safety measures across industries remain a major focus because of the inherent risks associated with hydrogen.
Allianz Commercial expects the market for hydrogen project insurance coverage to exceed $3 billion in premiums by 2030 as investors and developers seek protection from emerging risks.
Anthony Vassallo, global head of natural resources at Allianz Commercial, says insurers have a role in supporting the hydrogen sector by providing risk management advice and facilitating investment and innovation.
“Collaboration and knowledge-sharing within this industry are essential for developing best practices and building expertise. By addressing these multi-faceted challenges, the insurance sector can support the growth of the hydrogen economy and help facilitate the transition to net-zero emissions,” he said.
Vassallo also said that hydrogen’s growing presence in the global energy mix will have implications for multiple insurance sectors over the next decade.
“From an exposure and potential claims perspective, product lines such as energy, natural resources and liability are likely to see the biggest impact from hydrogen risks over the next five to 10 years, followed by property and marine,” he said
According to Allianz, insurance can help support the expansion of hydrogen projects and contribute to broader efforts to reach net-zero emissions targets.
Hydrogen has long been used in chemical and refinery sectors, where risks such as fire, explosion, and material embrittlement are well-known. Allianz highlights that new applications across transport, power generation, and storage will introduce additional hazards.
Planned large-scale projects will require an expansion of risk management practices. Storage and high-temperature combustion in energy production facilities can lead to leaks and explosions.
In transport, fuel cell vehicles may face embrittlement and leakage risks. Port operations and fuel handling will involve managing cryogenic and highly flammable hydrogen fuels, creating the potential for accidents and contamination incidents.
Allianz has previously committed to expanding its role in renewable energy and low-carbon technologies, setting a target of achieving 150% profitable revenue growth in this sector by 2030 compared to 2022 levels. The company has also announced plans to allocate an additional €20 billion toward climate and cleantech solutions.
In addition to Allianz’s own commitments, the wider industry is responding to hydrogen’s anticipated growth. Brokers such as Marsh have introduced specialized facilities offering up to $300 million of coverage per risk for hydrogen energy projects.
These programs cover both construction and operational phases, addressing complex exposures like start-up delays, equipment failures, and third-party liabilities.
Other market players, including Zurich and Aon, have launched clean hydrogen insurance facilities providing integrated multi-line policies. These solutions can cover construction risks, operational losses, marine cargo, liability, and business interruption for projects up to $250 million in capital.
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