As the need to shift to more sustainable forms of energy becomes more pronounced due to climate change, insurance will be crucial in helping Asian nations in achieving the transition to renewable energy, according to a report by Willis Towers Watson.
In its inaugural ‘Renewable Energy Market Review for 2020’ report, the global consultancy and brokerage identified several realities that the insurance industry needs to face in the new decade. These include:
“Due to the global pressures to reduce emissions and fight climate change, Asian governments and corporations are beginning to embrace the social transition from coal power to renewable energy,” said George Nassaouati, Willis Towers Watson’s head of natural resources, Asia.
“While the insurance markets… have been promoting this shift, the transition to renewable energy can only be sustainable with a rapid increase in investment into the industry. Not only are insurers leading the movement, they are also developing solutions which are tailor-made specifically to tackle issues such as the lack or shortfall of sun or wind energy.”
He added that transferring these risks to the insurance markets will allow improved cashflow for businesses, leading to the shifting away of investments from coal towards renewable energy.