Swiss Re: Energy Transition to Reshape Global Risk Markets by 2040

Swiss Re's recent study highlights the profound impact of the global energy transition on risk markets. By 2040, investments into energy transition, climate mitigation, and adaptation are projected to exceed USD 80 trillion, indicating a significant move towards large-scale deployment. This transition is driving continuous investment in green infrastructure and technologies.

The report, "Market perspectives: exploring the state of play in the energy transition," predicts that by 2030, renewable capacity will nearly double. Such expansion is expected to generate up to USD 26 billion annually in insurance premiums, with Asia-Pacific and Europe at the forefront. The shift in technologies and weather volatility necessitates rigorous risk analysis.

Insurance needs are evolving from construction-phase to long-term operational resilience. Emerging trends, such as extreme weather damage and battery-storage fires, require an integrated approach to underwriting and real-world data.