At least $10tn of insurance cover needed to reach net zero, report says

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🗞️ Driving the news: A new report by Howden and Boston Consulting Group reveals that at least $10 trillion of insurance cover will be needed to support the $19 trillion investment required for the transition to net zero by 2030, highlighting unprecedented structural pressures on the insurance sector

🔭 The context: The insurance sector's role is crucial in underwriting the risks associated with new green technologies and large-scale infrastructure projects, such as offshore wind and solar farms
• Insurers are working with green energy groups to mitigate risks, but face challenges due to the lack of historical data on these innovative technologies

🌍 Why it matters for the planet: Adequate insurance coverage is essential for the successful deployment of renewable energy projects and other green technologies, which are vital for achieving global net-zero targets and combating climate change

⏭️ What's next: Despite pressures, there is an anticipated need for continued insurance in fossil fuel projects alongside green investments
• Insurers must balance caution with innovation to provide necessary coverage without historical loss data

💬 One quote: "We are going to be having this energy transition globally, at pace and scale, all at the same time,” said Rowan Douglas, Howden’s climate team CEO

📈 One stat: At least $10 trillion of new insurance cover is needed between 2023 and 2030 for the energy, road transport, and building sectors

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