Energy and Power Insurance Market Report 2026

The energy and power insurance market size has grown strongly in recent years. It will grow from $7.82 billion in 2025 to $8.37 billion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to expansion of large-scale power generation projects, growth in oil and gas infrastructure investments, rising exposure to natural disaster risks, increasing regulatory insurance requirements, early adoption of energy sector risk coverage.

The energy and power insurance market size is expected to see strong growth in the next few years. It will grow to $10.89 billion in 2030 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to increasing investments in renewable energy infrastructure, rising focus on climate risk insurance, expansion of smart grid deployments, growing demand for cyber risk coverage in energy assets, increasing integration of predictive analytics in underwriting. Major trends in the forecast period include increasing demand for renewable energy risk coverage, rising adoption of customized insurance products, expansion of data-driven risk modeling, growing focus on environmental liability protection, enhanced emphasis on business continuity insurance.

The growing demand for renewable energy is anticipated to drive the expansion of the energy and power insurance market in the coming years. Renewable energy is produced from naturally replenishing sources such as sunlight, wind, water, and geothermal heat. This rising demand is largely driven by the global shift toward lowering greenhouse gas emissions, as nations and corporations adopt cleaner energy alternatives to meet climate goals, enhance air quality, and move away from fossil fuels. The increasing adoption of renewable energy fuels the need for energy and power insurance by boosting investments in renewable projects, which require thorough coverage to address construction risks, operational hazards, equipment malfunctions, and potential financial losses linked to large-scale solar, wind, and hydropower projects. For example, in December 2024, Eurostat, a Luxembourg-based government agency, reported that in 2023, renewable energy accounted for 24.5% of total energy consumption in the EU, up from 23% in 2022. Consequently, the rising demand for renewable energy is supporting the growth of the energy and power insurance market.

The increasing investment in electricity grid infrastructure is expected to drive the growth of the energy and power insurance market in the coming years. Electricity grids serve as the backbone of energy distribution and are progressively incorporating renewable energy sources, which makes them more complex and valuable. The expansion and modernization of these grids heighten exposure to operational, technological, and environmental risks, boosting the need for specialized insurance solutions. For example, in September 2024, REN21, a France-based nonprofit association, reported that global investment in electricity grid infrastructure rose by approximately 5.3% in 2023, reaching USD 310 billion, highlighting the substantial capital being directed toward complex energy systems. Consequently, the increasing investments in electricity grids are fueling the growth of the energy and power insurance market.

Major companies operating in the energy and power insurance market are concentrating on creating innovative solutions, such as coverage for renewable energy projects, to manage risks and encourage investment in clean energy infrastructure. Coverage for renewable energy projects offers insurance for the development, construction, and operation of assets like wind, solar, and hydro plants, enabling stakeholders to minimize losses from damage, delays, or operational issues and secure project financing. For example, in July 2024, Zurich Insurance Group AG, a Switzerland-based multinational insurance company, introduced a clean hydrogen insurance facility in partnership with Aon Plc, a UK professional services firm, providing comprehensive coverage for blue and green hydrogen projects, including construction, operational, business interruption, and carbon capture risks. The facility is designed to cover the full project life cycle, addressing complex risks across hydrogen production, infrastructure, transport, and carbon capture, utilization, and storage (CCUS) technologies. Its goal is to help developers and investors mitigate project risks, obtain sufficient insurance coverage, and attract funding for large-scale clean hydrogen projects.

Major companies operating 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., kWh Analytics Inc., Total Risk Solutions Inc., American International Group AIG, Chubb Limited, The Travelers Companies Inc., Assicurazioni Generali, RenaissanceRe, Lloyd’s of London, CNA Financial Corporation, QBE Insurance Group, Mapfre SA, HDI Global SE, Arch Insurance Group Ltd., Arthur J Gallagher and Co.

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

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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