Energy and Power Insurance Market Report 2025

The energy and power insurance market size has grown strongly in recent years. It will grow from $7.29 billion in 2024 to $7.82 billion in 2025 at a compound annual growth rate (CAGR) of 7.2%. The growth during the historic period was driven by higher demand for insurance coverage for conventional power plants, increased investments in fossil fuel infrastructure, stricter regulatory requirements in the energy sector, expanded coverage for natural disaster risks, and a rise in financing for energy projects.

The energy and power insurance market size is expected to see strong growth in the next few years. It will grow to $10.2 billion in 2029 at a compound annual growth rate (CAGR) of 6.9%. The growth projected for the forecast period is driven by greater adoption of renewable energy insurance, heightened cyber risk threats to energy infrastructure, increased government incentives for clean energy projects, expanded coverage for smart grid technologies, and rising demand for insurance in electric vehicle infrastructure. Key trends expected during this period include improvements in risk modeling technologies, advancements in digital claims processing, growing investment in research and development, innovations in parametric insurance solutions, and the use of blockchain to enhance policy management and transparency.

The growing demand for renewable energy is expected to boost the energy and power insurance market in the coming years. Renewable energy comes from naturally replenishing sources such as sunlight, wind, water, and geothermal heat. This demand is largely driven by efforts to reduce greenhouse gas emissions, improve air quality, and shift away from fossil fuels. As investments in renewable projects increase, the need for energy and power insurance also rises to cover construction risks, operational hazards, equipment failures, and potential financial losses associated with large-scale solar, wind, and hydropower installations. For example, Eurostat reported that in 2023, renewable energy accounted for 24.5% of total energy consumption in the EU, up from 23% in 2022, highlighting the growing reliance on clean energy sources.

Companies in the energy and power insurance sector are introducing specialized coverage for renewable energy projects to manage risks and attract investment. This coverage supports the development, construction, and operation of wind, solar, and hydro plants by protecting stakeholders from damage, delays, operational failures, and financial losses. For instance, in July 2024, Zurich Insurance Group AG, in partnership with Aon Plc, launched a clean hydrogen insurance facility covering blue and green hydrogen projects. The facility provides comprehensive coverage for construction, operations, business interruption, and carbon capture, utilization, and storage (CCUS) technologies, helping developers and investors de-risk projects and secure funding for large-scale hydrogen initiatives.

In August 2022, Norrenberger Advisory Partners Limited (NAPL), a Nigeria-based financial services firm, acquired International Energy Insurance Plc (IEI) for an undisclosed sum. The acquisition aims to expand Norrenberger’s business model, improve service delivery, and enhance insurance solutions distribution across Nigeria. By leveraging IEI’s expertise and infrastructure, Norrenberger plans to offer more comprehensive insurance products, increase market penetration, and support sustainable growth in the Nigerian energy insurance sector. International Energy Insurance Plc is a provider of energy insurance in Nigeria.

Major players in the energy and power insurance market are Berkshire Hathaway Specialty Insurance Company, Allianz SE, Munich Reinsurance Company, Liberty Mutual Insurance Company, Tokio Marine Holdings Inc., Swiss Reinsurance Company Ltd., Zurich Insurance Group Ltd., Sompo Holdings Inc., Marsh & McLennan Companies Inc., Everest Reinsurance Company, Markel Corporation, Willis Towers Watson Public Limited Company, Amwins Group Inc., Axis Capital Holdings Limited, Starr International Company Inc., Anand Rathi Insurance Brokers Limited, kWh Analytics Inc., Total Risk Solutions Inc., WealthGuard Insurance Group Inc., and Inigo Insurance Services Inc.

North America was the largest region in the energy and power insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in energy and power insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the energy and power insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Energy and power insurance provides risk protection specifically designed for businesses operating in the energy sector, shielding them from financial losses due to unexpected incidents or operational disruptions. It is tailored to address the unique challenges of this capital-heavy industry and supports the continuity and stability of operations.

Key types of energy and power insurance include property coverage, liability coverage, business interruption protection, and environmental liability insurance. Renewable energy insurance specifically addresses risks tied to power generation from sources such as solar, wind, and hydro, protecting investments in clean energy projects. These policies encompass various energy sources, including renewable, non-renewable, fossil fuels, and nuclear energy, with coverage terms that can be short-term, long-term, or specific to particular events. They are applied across sectors such as oil and gas, renewable energy, and power generation, serving a range of end-users from commercial to industrial.

The energy and power insurance market research report is one of a series of new reports that provides energy and power insurance market statistics, including energy and power insurance industry global market size, regional shares, competitors with the energy and power insurance market share, energy and power insurance market segments, market trends, and opportunities, and any further data you may need to thrive in the energy and power insurance industry. This energy and power insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The energy and power insurance market consists of revenues earned by entities by providing services such as equipment breakdown insurance, construction all risks insurance, marine cargo insurance, cyber risk insurance and terrorism insurance. The market value includes the value of related goods sold by the service provider or included within the service offering.

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.

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