WTW Renewable Energy Market Review 2023
In previous editions of the Renewable Energy Market Review we have reported on current market dynamics and successfully predicated the overall direction of travel. In this article the aim is to capture some of the key drivers and challenges anticipated within the burgeoning Renewable Energy market, both in London and on an international level.
We have previously reported that the Renewable Energy insurance market was – and continues to be – a complex, fragmented, dynamic, evolving global market still accommodated within many different product lines, making it opaque and difficult to directly analyse. It’s certainly complex, traversing the fortunes and prevailing appetites in several product lines:
As these markets expand to accommodate the low carbon opportunity, they have captured many new graduates who now have 2-3 years market experience; however, they only know the harder market conditions which still prevail today.
In our January 2022 Renewable Energy Market Review, we reported that as the pandemic became more controlled, insurers' Combined Ratios were indicating a return to more sustainable levels. The technical adjustment of 2018-2021 was producing the desired impact, and there was a clear sense that the head of steam which had driven the last three years of pricing acceleration was stating to run out.
Considerable pain had been endured by insurance buyers, and with the hardening of attitudes towards ESG and the reduction in thermal opportunities, there was unlikely to be any shortage of capacity interested in supporting clean and green technologies. With the market fuelled by a feel-good factor due to this rapidly growing and now profitable sector, it was likely to experience a period of buoyant capacity (although still with limited technical engineering leads) which in turn would lead to signs of tentative competition beginning to show for some programmes.
It was felt that in some circumstances, the peak in rates was in sight – if buyers approached the market with their brokers in the right way, at the right time and with the right information:
To read more, please download the full article, below.
| Title | File Type | File Size |
|---|---|---|
| The Renewable Energy Insurance Markets in 2023: key drivers and challenges | .7 MB |
WTW offers insurance-related services through its appropriately licensed and authorised companies in each country in which WTW operates. For further authorisation and regulatory details about our WTW legal entities, operating in your country, please refer to our WTW website. It is a regulatory requirement for us to consider our local licensing requirements.
With over 36 years of industry and 50GW+ of Renewable Energy advisory and placement experience, Steven is responsible for managing the London Global Renewable Energy team. Steven is also responsible for working with all Country Retail Network offices to bring thought leadership, insight and excellence in delivery to our global renewable energy clients. He works directly with clients and markets and is highly experienced in achieving bankable and innovative risk advisory, risk transfer solutions, particularly on complex non-resource debt finance renewable projects. Steven is responsible for the implementation of the global strategy, management and resources for Global Natural Resources Renewable Energy.
