The renewable energy market is looking attractive
Within the space of a few weeks, two of the insurance industry’s top companies have set their sights on the renewable energy sector.
Marsh this week announced the creation of a new practice, operating in London and New York, while earlier in the month Royal & SunAlliance launched a division operating out of the UK, Canada and Scandinavia.
As brokers and insurers look to diversify their businesses, emerging sectors such as renewable energy are looking extremely attractive.
R&SA estimates that the global insurance market for wind energy is currently worth £250m and is expected to exceed £1bn by 2015.
And then there other forms of renewable energy such as biodiesel, solar energy, hydro-electric power, wave and tidal energy – the use of which is likely to expand in the coming years as moves to mitigate global warming gathers pace.
As Marsh puts it: “Businesses and governments have sharpened their focus on renewable energy, particularly as the energy industry responds to the global emphasis on developing new technologies that lower carbon emissions.”
At this week’s Biba conference, AIG boss Martin Sullivan said insurers and brokers should look for profitable niche lines, such as those in emerging markets, if they are too be successful.
No doubt other companies will be looking to explore the businesses opportunities that the fight against global warming presents.
