Aon has developed a seven-step “actionable pathway” for (re)insurers to increase their involvement in sustainable energy.  

The framework focuses on ways to advance strategy, evaluation, innovation and talent to meet the increasing demands of energy transition industries.

The broker forecasts the sector’s global premium will pass $US9 billion ($13.95 billion) by 2030, and hydrogen production is expected to have gross written premium of $US5 billion ($7.75 billion) by 2027.  

Aon says the pathway is “designed to meet insurers wherever they are on their sustainability journey”, allowing them to assess their exposures and identify growth opportunities.

The framework also promotes innovative solutions such as parametric weather coverage and the use of data-driven insights to monitor claims, sector trends and loss ratios.  

Aon global climate and net zero transition leader for reinsurers Wouter Bosschaart says the industry can play a critical role promoting shifts towards sustainable practices.  

“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,” he said. 

“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.” 

See the framework here.