Swiss Re has warned the accelerating global energy transition creates bespoke risks for the market.

The underwriter added while it is reshaping the risk landscape for investors and insurers it cannot and should not be commoditised.

The call comes in a new report, “Market perspectives: exploring the state of play in the energy transition”, which includes new projections from Swiss Re Institute, estimating renewable capacity to almost double from 4.4 terawatts (TW) in 2024 to 8.5 TW by 2030, generating up to $26 billion in annual insurance premiums.

Asia-Pacific and Europe are leading this expansion, while shifting technologies and weather-driven volatility drive new observed trends in exposures and losses which, in turn, require rigorous risk analysis.

Estimates show that by 2040, total investment into energy transition, climate mitigation and adaptation is expected to surpass $80 trillion, marking a shift from experimentation to large-scale deployment.

Jimmy Keime, head Engineering & Nuclear at Swiss Re, says: “As the global energy transition continues to accelerate, it’s drawing sustained investment into green infrastructure and technologies. Amid this changing landscape, our analysis suggests that industry players should not approach renewables as a commoditised or fully standardised risk class.”

“As renewable portfolios mature, we observe that insurance needs move from the construction-phase toward long-term operational resilience, supported by standalone renewable energy treaties (with facultative remaining an option for larger and less proven risks),” the report added. “Meanwhile, new claims trends observed in market data – including extreme-weather damage, battery-storage fires, and mechanical failures – are demanding tighter links between underwriting and real-world data.”

Miguel Senac and Michele Cibrario, co-heads Energy Centre of Competence at Swiss Re added: “The global energy transition continues to accelerate, drawing sustained investment into green infrastructure and technologies.

“As scaling accelerates beyond 2030, this momentum presents an opportunity but also a complex challenge for the re/insurance industry. The traditional Oil and Gas industry is simultaneously undergoing structural changes and shifts in portfolio compositions.

“Amid this rapid change, the insurance industry can’t just follow the expansion, instead, it must enable sustainable growth. Not only providing capital but also underwriting insights built on technical insight, risk knowledge and a clear understanding of risk exposure, loss experience and accumulation potential.

“From construction to operation, each project has its own risks. Many renewable energy technologies remain unproven at scale, and markets are still experimenting with a wide variety of solutions.

“Risks such as natural catastrophe exposure and serial losses for example must be factored in from the outset. Geopolitical changes and supply chains also shape this market – from project approval and financing to the production and cost of components. Despite the uncertainty this can create, projections still show a growing market for renewable energy as part of the energy transition.”