Renewables

Market conditions

The Renewables market continues to go from strength to strength. New entrants have joined the market, existing insurers have expanded their participation, and competition is now strong across almost every major region. These trends are creating favorable conditions for buyers: well-performing projects are typically achieving reductions of between 5–20%, depending on geography, technology, and risk profile. Some of the strongest reductions are being seen in South America, where competition has become particularly intense.

The benefits are not limited to pricing. Across the market, organizations are increasingly securing broader policy wordings, higher natural catastrophe sub-limits, and improved deductible structures. Buyers are also seeing greater flexibility around coverage, and more favorable placement terms.

These conditions have been supported by a relatively benign claims environment. The absence of significant natural catastrophe activity during 2025 has helped maintain insurer confidence and encouraged further capacity growth. As a result, insurers remain focused on expanding portfolios and winning business. However, regional risk profiles are becoming increasingly important. In the US, attention remains focused on storm and wind exposures, while flood risk continues to attract scrutiny in the UK. In the Middle East, recent hail losses have reinforced the importance of understanding catastrophe exposures beyond traditional modelling assumptions.

At the same time, the market remains highly technical. The performance of Battery Energy Storage Systems (BESS) and new and prototype technologies continue to receive insurer attention. Project quality is also becoming an increasingly important differentiator. Insurers want to see evidence that equipment is suitable for local conditions, that projects are being delivered by experienced contractors, and that lessons from previous losses have been incorporated into planning and design.

Supply chains are also attracting greater attention. Longer repair timelines, increasing demand for specialist equipment, and constraints around key components all have the potential to increase both Business Interruption (BI) and Delay in Start-Up (DSU) exposures. These conversations are becoming a more prominent part of the placement process, particularly on larger and more complex projects.

Outlook

Further softening is expected over the next 12 months, supported by continued capacity growth, healthy competition, and favorable claims experience. Buyers should continue to benefit from improving terms, broader coverage and attractive pricing conditions.

Several factors will influence how the market develops over the coming year:

  • Capacity growth
  • Future natural catastrophe activity
  • Supply chain performance
  • Emerging technology losses
  • Regulatory and political developments
  • Contractor performance and project execution

Natural catastrophe activity is likely to remain the most important factor. The upcoming hurricane season and wider severe weather trends will be closely watched by insurers. A significant loss event could affect sentiment, particularly in areas where capacity has grown quickly.

Energy Transition