Aon unveils framework to accelerate re/insurer investment in sustainable energy

With global premiums forecast to exceed $9 billion by 2030, Aon has launched the Low-Carbon Transition Framework for Insurers, a seven-step process aimed at driving re/insurer engagement with the sustainable energy sector, which, through their capital support, will reportedly increase the viability of low-carbon energy projects and drive climate resilience.

“The Framework, which focuses on strategy, evaluation, innovation and talent, provides an actionable pathway to profitable growth by helping re/insurers capture surging premiums from rapid innovation and rising investments in sustainable energy solutions – such as hydrogen, battery storage and renewables,” Aon explained.

According to the firm, the framework will help re/insurers align their underwriting appetite with emerging technologies, integrate transition risk management into enterprise strategies, and leverage performance analytics to benchmark their portfolios.

Wouter Bosschaart, global climate and net-zero transition leader for re/insurers at Aon, commented, “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.

“Re/insurers that adopt data-driven insights will be best-positioned to capture market share and deliver sustainable, profitable growth through the energy transition.”