Climate-Related Solutions Offer Insurers Big Growth Prospects

With a broad range of commercial lines climate insurance solutions coming to market, premium revenue for such solutions will help to more than double from between €24 and €25 billion in 2022 to €60 billion by 2030, according to Bain & Company estimates. Solutions related to renewable energy, biodiversity, environmental liability, carbon offset, new infrastructure, mobility, and advisory services will all grow significantly. To address these opportunities, insurers are taking diverse approaches, from developing lean central hubs to building vertical business units. Regardless of their chosen operating model, insurers should consider the segment size and projected growth, profitability, competitive intensity, anticipated supply and demand, and the capabilities required to succeed.