Global insurance premiums linked to the energy transition are expected to exceed the equivalent of £7.2bn by 2030, driven by rapid investment in hydrogen, battery storage and renewable power, according to research conducted by Aon.

Aon’s research highlights significant premium expansion across core transition segments. Battery energy storage systems are forecast to generate more than £0.8bn in gross written premiums by 2027, supported by an estimated 25% compound annual growth rate. Hydrogen-related risks could reach £4bn by the same date with annual growth of at least 10%. Premiums for renewable power generation are projected to rise by almost £2.4bn between 2024 and 2030.

In response to this acceleration, the organisation has introduced a low-carbon transition framework to help insurers and reinsurers capture emerging opportunities across the sector. The seven-step model focuses on strategy, evaluation, innovation and talent.

Wouter Bosschaart, global climate and net-zero transition leader for re/insurance at Aon, said: “With energy transition premiums set to surge, Aon’s Low-Carbon Transition Framework empowers re/insurers to make better business decisions and seize opportunities around this growth.

"As the industry develops new products and services that align with this rapidly evolving sector, it will help to drive climate resilience for governments, businesses and communities, while delivering enduring value for stakeholders. Re/insurers that adopt data-driven insights will be best positioned to capture market share and deliver sustainable, profitable growth through the energy transition.”

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