Why Insurance Capacity in Renewable Energy is Tightening and What Clients Can do About it

Posted by Angus Nanan, Head of Construction, Kerry London Ltd

The renewable energy sector continues to grow at pace. Investment is increasing, technology is advancing, and the transition to net zero remains a clear priority.

However, alongside this growth, the insurance market is becoming more selective. Capacity for renewable energy insurance is tightening, underwriting scrutiny is increasing and placing cover is, in some cases, more complex than it has been in recent years.

For developers, investors and operators, this creates new challenges. But with the right approach, strong outcomes are still achievable.

Why insurance capacity is tightening  

More complex technology

Renewable energy projects are evolving quickly. Larger wind turbines, more advanced solar technology and the growth of battery energy storage systems (BESS) are improving performance, but they also introduce new risks.

Insurers are looking more closely at how these technologies are designed, installed and maintained. Where information is limited or systems are unproven, capacity can reduce or pricing can increase.

As assets mature, this scrutiny continues. Well-maintained, well-documented portfolios are viewed positively, while gaps in data or maintenance can impact terms.

Greater exposure to natural catastrophe risk

Renewable assets are often located in areas exposed to weather-related events. Storms, flooding and wildfire risk are all influencing how insurers deploy capacity.

In higher-risk locations, insurers may limit the cover they offer or become more selective in the projects they support. This is particularly relevant for developments in areas with a history of severe weather or grid instability.

Rising climate-related losses

Climate risk is now a central factor in Renewable Energy Insurance. Increasing frequency and severity of events such as storms and flooding are affecting insurer and reinsurer appetite.

As a result, some insurers are reducing the limits they are willing to offer, or applying more cautious terms. This has a direct impact on how programmes are structured, particularly for larger projects.

Increased focus on underwriting discipline

While there is still appetite in the market, insurers are more selective. They are focusing on profitability, quality of risk and the strength of supporting information.

Projects involving new technology, limited loss data or complex structures can require more detailed underwriting and, in some cases, a more structured placement approach.

What this means for renewable energy clients

The shift in the market does not mean cover is unavailable. It means preparation and approach matter more than ever.

Early engagement is key

Starting the conversation early gives time to gather the right information and present your project clearly to insurers. This improves access to capacity and allows for more competitive outcomes.

Late engagement can limit options and reduce flexibility when structuring cover.

Strong data improves outcomes

Insurers are placing greater emphasis on detailed, credible information. This includes engineering reports, performance data, maintenance records and risk assessments.

Clear, well-presented data helps build confidence and can make a meaningful difference to both capacity and pricing.

Risk management needs to be visible

Insurers want to see how risks are actively managed. This includes protection against fire, flood and operational failure, as well as cyber resilience for control systems.

Demonstrating a proactive approach to risk can strengthen your position and differentiate your project.

Alternative structures may be required

In some cases, traditional insurance structures may need to be adapted. Layered programmes, multiple insurers or alternative risk solutions can help bridge gaps where capacity is limited.

The importance of the right advice

Renewable Energy Insurance is becoming more technical and more nuanced. The difference between a well-presented risk and a poorly presented one is increasingly significant.

Kerry London understands renewable energy projects – across wind, solar and BESS – and will ensure your risk is positioned correctly and that your programme is structured effectively.

Final thoughts

Insurance capacity in the renewable energy sector is tightening for clear reasons: evolving technology, climate exposure and a more disciplined underwriting approach.

However, well-structured projects with strong data and clear risk management continue to attract support.

At Kerry London, we work closely with clients across the renewable energy sector to navigate these changes. We take the time to understand your project and arrange insurance that supports its long-term success.

If you would like to review your Renewable Energy Insurance strategy or discuss an upcoming project, our team is here to help.

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Kerry London is authorised and regulated by the Financial Conduct Authority. The company is a leading UK independent and Lloyd’s registered broker, which means that we work with a wide range of niche and major insurers.

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