WTW is drawing attention to the insurance sector’s role in supporting the next phase of energy development, from nuclear innovation to the commercialisation of fusion power.
Fusion, the process of merging light atomic nuclei to release energy, is being explored as a long-term power source.
The most common approach uses hydrogen isotopes – deuterium and tritium – which fuse to form helium and a neutron.
Deuterium can be sourced from seawater, while tritium can be bred from lithium or certain fission reactors, making supply comparatively abundant.
Replicating conditions similar to the sun requires plasma heated to more than 100 million degrees Celsius and kept stable long enough to generate usable energy.
Unlike fission, which splits heavy atoms such as uranium, fusion does not produce long-lived radioactive waste or rely on chain reactions.
If containment fails, the reaction ends, eliminating the risk of meltdown.
Although fusion offers clear advantages, commercialisation has been difficult.
The US National Ignition Facility achieved a breakthrough in 2022 when it generated more energy from a fusion reaction than was supplied by lasers, a milestone called ignition. Scaling this success into continuous, grid-ready power remains a challenge.
Global investment continues to accelerate. More than 50 start-ups and several government-backed projects, including ITER in France, are working toward the first operational plants.
Some technology companies and data centre operators have already signed preliminary power purchase agreements with developers, reflecting long-term interest in baseload clean energy.
WTW said fusion introduces new categories of insurance demand. Construction, liability, and surety products will be required, along with decommissioning assurance for licensing. Coverage for tritium production and transport may also become necessary.
Because fusion facilities are regulated differently from fission plants, projects may move ahead without the extended delays common in nuclear approvals. This opens opportunities for insurers to participate earlier in project lifecycles.
WTW also noted that nuclear power remains central to energy transition strategies. Advances such as small modular reactors are designed to enhance reliability and safety.
Insurance is relevant at every project stage:
Standalone cost-overrun insurance is not widely available, but insurers and brokers are working on customised options.
Predictive analytics, subcontractor oversight, and early insurer engagement are increasingly part of nuclear project risk management.
WTW’s 2025 Renewable Energy Market Review reported that Australia added 7.5 gigawatts of renewable capacity in the past year, led by both utility-scale generation and rooftop solar.
Claims have risen as extreme weather and new technologies create additional risks.
John Rae, regional renewable energy leader at Willis Natural Resources, Pacific, said insurers are responding by becoming more selective.
“The insurance market for these assets is under pressure due to mounting claims, extreme weather events, and ever evolving technology risks,” he said.
