Electric Energy Insurance Market Report 2026

The electric energy insurance market size has grown strongly in recent years. It will grow from $3.7 billion in 2025 to $3.99 billion in 2026 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to expansion of electricity generation capacity, rising investments in power transmission infrastructure, increasing frequency of grid disruptions, growth of private power producers, rising regulatory requirements for energy operators.

The electric energy insurance market size is expected to see strong growth in the next few years. It will grow to $5.34 billion in 2030 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to increasing deployment of renewable and distributed energy systems, growing exposure to climate-related risks, rising adoption of smart grids, increasing cyber threats to energy infrastructure, expansion of energy storage installations. Major trends in the forecast period include increasing demand for renewable energy insurance coverage, growing focus on cyber risk protection for power systems, expansion of usage-based and risk-adjusted premium models, rising adoption of data-driven underwriting practices, enhanced coverage for grid modernization assets.

The growing adoption of renewable energy projects is expected to drive the expansion of the electric energy insurance market. Renewable energy projects involve infrastructure and installations that generate electricity or energy from naturally replenished resources. This growth is fueled by government mandates as many countries implement clean energy targets to address climate change. Electric energy insurance supports these projects by covering operational risks, ensuring financial stability throughout their lifecycles. It reduces revenue uncertainty by protecting against equipment failures and grid disruptions, thereby increasing investor confidence and project viability. For example, according to the International Energy Agency (IEA), a France-based intergovernmental organization, renewable energy capacity additions increased by 50% in 2023, reaching 507 gigawatts compared to 338 gigawatts in 2022. Consequently, the rising uptake of renewable energy projects is boosting the electric energy insurance market.

Leading companies in the electric energy insurance market are focusing on developing advanced solutions such as parametric insurance platforms to improve risk assessment accuracy, speed up claims processing, and provide more customized coverage options. Parametric insurance platforms are digital systems that offer insurance payouts based on predefined triggers - like specific weather events or energy output - allowing fast, automated payments without traditional loss evaluations. For instance, in October 2023, Adaptive Holdings Inc., a US-based climate resiliency firm, launched GridProtect, an AI-powered parametric insurance platform. This platform delivers immediate financial support to businesses affected by power outages caused by climate risks. Utilizing AI and climate data, it offers quick, trigger-based payouts, addressing gaps in conventional insurance models. This innovation aims to strengthen business resilience by minimizing downtime and financial impacts during climate-related power disruptions.

In November 2024, Strategic Risk Solutions Inc., an independent insurance company based in the US, partnered with Paratus Holdings Limited to broaden specialty insurance offerings in the energy sector. This collaboration focuses on enhancing electric energy insurance solutions through innovative risk management and captive insurance strategies. Paratus Holdings Limited is a UK-based specialty insurer specializing in electric energy insurance solutions.

Major companies operating in the electric energy insurance market are Berkshire Hathaway Inc., Allianz SE, AXA S.A., Assicurazioni Generali S.p.A., Munich Reinsurance Company, Liberty Mutual Insurance Company, Tokio Marine HCC, Swiss Reinsurance Company Ltd, Zurich Insurance Group Ltd, Chubb Limited, Sompo International Holdings Ltd, The Travelers Companies Inc., Mapfre S.A., Marsh LLC, QBE Insurance Group, Arch Insurance Group Ltd, Arthur J. Gallagher & Co., Aspen Insurance Holdings Limited, Uib Insurance Brokers (India) Private Limited, Everen Limited.

North America was the largest region in the electric energy insurance market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electric energy insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric energy insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric energy insurance market includes revenues earned by entities through coverage for liability protection for grid failures, insurance against natural disasters affecting power infrastructure, cyber risk insurance for digital energy systems, and business interruption coverage due to power outages or system failures. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.