Aon launches its Low-Carbon Transition Framework for Insurers, a seven-step process designed to help (re)insurers engage with the rapidly growing sustainable energy sector, where global premiums are forecast to exceed US$9 billion by 2030. The framework, announced on 17 November, focuses on strategy, evaluation, innovation, and talent, providing an actionable pathway to profitable growth. It helps (re)insurers capture surging premiums from rapid innovation and rising investments in sustainable energy solutions such as hydrogen, battery storage, and renewables. Aon research forecasts high premium growth rates across the energy transition sector. Battery Energy Storage Systems are expected to generate more than US$1 billion in Gross Written Premiums by 2027, with an estimated 25 per cent compound annual growth rate, driven by emerging needs for embedded insurance coverage and cyber protection. Hydrogen-related risks represent a market opportunity of US$5 billion GWP by 2027 with at least 10 per cent CAGR, across the full value chain from early prototypes to advanced leak detection systems. Insurance for renewable power generation is forecast to increase by nearly US$3 billion globally between 2024 and 2030. The holistic framework assists (re)insurers to align their underwriting appetite with emerging technologies, embed transition risk management into enterprise strategies, and leverage performance analytics to benchmark portfolios. Its dynamic approach allows companies to define their strategy, assess current exposures, and identify growth opportunities. Wouter Bosschaart, global climate and net-zero transition leader for (re)insurers at Aon, says: "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."
