Insurer appetite is growing in a period of transition

In a challenging geopolitical landscape and with climate change hot on global agendas, the energy sector's focus is increasingly on the renewables space. Moreover, insurance markets are either pulling out of the upstream oil and gas sector completely, or refocusing underwriting teams on renewable energy risks.

The renewables space has grown significantly in the past two to three years, no longer simply focusing on wind and solar power, but moving into other areas. This presents a big opportunity for Australia, with international companies keen to invest in this space.

From a risk perspective, macroeconomic headwinds are ongoing, and extreme weather events necessitate risk mitigation measures for renewable energy projects.

In our Business Insurance Market Conditions and Risk Dynamics H2 2023 report, we provide insights on what's influencing the energy & renewables sector, including:

  • Competition is increasing in the renewable energy insurance market with the arrival of new entrants.
  • Pricing remains stable, particularly for those with a good claims history.
  • Commodity prices and supply chain challenges continue to be felt across the sector.
  • Traditional energy providers are facing increased scrutiny from regulators in terms of ESG reporting.

Other topics in the report include:

  • Claims — supply shortages and significant weather events drive up claims inflation rate
  • D&O — negotiable premiums provide a more favourable market for companies seeking D&O
  • Cyber — risk awareness takes centre stage as breach response resilience is prioritised
  • Property — increased rates and variable capacity are becoming the new norm
  • Workplace risks — regulators consider tightening measures as the trend towards workers' long-term claims rises
  • Marine & cargo — regulatory scrutiny of business ESG credentials to increase

For more insights on the state of the business insurance market in Australia and risk dynamics, download our full report.

Looking for business risk and insurance advice?

During this time of change you can turn to our Gallagher experts for advice and guidance. We are here for you and will do everything we can to help you face the future with confidence.

Please access your copy of the Business Insurance Market Conditions and Risk Dynamics H2 2023.

Business Insurance Market Conditions and Risk Dynamics H2 2023

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Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient's industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers' control.

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