The past week has been defined by a raft of reports and research which make sober reading for businesses risk managers and the insurance sector.

The threat of cyber-attack is now putting CISOs under intolerable pressure, but the insurance industry has been warning of a new risk environment in which businesses will need to fundamentally rewrite their risk management strategies in the face of new threats.

Indeed, Tokio Marine GX has warned insurance solutions are failing to keep pace with the risks that come with the speed of clean technology growth, creating a dangerous and growing ‘protection gap’ that threatens the success of the global green transition.

The report, It’s Not Easy Writing Green: How can insurers step up to support a resilient green transition? Was based on over 25 years’ worth of data from specialist renewables underwriter GCube Insurance, which became Tokio Marine GX at the start of last month.

Unsurprisingly climate-related risks are now emerging in regions once thought to be low-risk. Supply chain disruption continues to impact global markets. Power grids struggle to keep up with the integration of new capacity.

Fraser McLachlan, chairman, TMGX, said: “The green transition is one of the defining undertakings of our time, and insurance has a central role to play in helping it succeed. But it is not enough to simply provide capacity. What is needed is the expertise and experience, insurance product innovation and global collaboration to ensure that risk is shared fairly and that projects have the resilience to move forward. Closing the protection gap is how our industry can make a real difference.”

TMGX said Greater investment in data and analytics will help the market build a more reliable picture of risk as new green transition technologies come to new and existing global markets. There needs to be more open collaboration between insurers, brokers and lenders, which will improve transparency and make risk management more effective.

As such targeted product innovation needs to fill gaps in areas such as tax credit exposures and carbon capture projects.

Oliver Litterick, head of renewables, TMGX, added: “In the global clean energy market, we are seeing a perfect storm of challenges, from geopolitical shifts to climate volatility and supply chain fragility. If insurers want to be effective stewards of the green transition, they need to move beyond reactive coverage and build long-term capacity strategies that reflect the complexity of today’s risks. That is what sustainable support looks like.”

A perfect storm is the best way to describe the current risk environment and the demand for new solutions and new approaches has seldom been greater.

While revolution is most likely required a rapid evolution is an absolute must.

Jon Guy, Editor,

Emerging Risks