TMGX Renewables Market Update: June 2026

Following the latest edition of our European Renewable Energy Risk Seminar in Bordeaux this May, Tokio Marine GX Chairman, Fraser McLachlan and our Head of Renewables, Olly Litterick, provide their reflections on the core values and attributes that are needed to deliver a resilient green transition.

Fraser McLachlan, Chairman

It’s been a year since we first announced the launch of Tokio Marine GX (TMGX).

This time last year, I remember being asked “Why TMGX and why now?” To which the simplest answer was that the green transition is rapidly evolving and progressing before our eyes. We can either adapt and continue to enable smart, sustainable innovation, or stay as we are and ultimately inhibit the growth that we have helped generate.

The last twelve months have shown us once again how susceptible our industry is to change:

• Geopolitical tensions are driving new urgency in national strategies to achieve energy security and sovereignty through renewable sources of power
• Climate risk is sharply growing, both in areas known to be vulnerable to extreme weather events and areas that have historically been regarded as risk free, posing a threat to the very assets deployed to address climate change
• Renewable energy technology is upgrading faster than before with larger wind turbines, thinner solar panels, and higher-capacity and longer-duration BESS containers
• Demand for 24/7 power is exploding as data centres expand to support digitalisation and wider use of generative AI
• Renewable energy companies are increasingly co-locating different technologies to provide wider-ranging products beyond simply generating clean energy

As we all know, change often increases existing risk exposure or introduces new risks. Even so, change should be exciting to us because it also means fresh opportunities. Every year for the last five years we have seen record-breaking investment in the energy transition; the $2.3 trillion total investment recorded by BloombergNEF in 2025 was an 8% increase on the previous year. The commitment and the will to succeed in our industry remain undaunted by the challenges of a constantly shifting landscape.

This spirit was reflected in this year’s edition of our annual European Renewable Energy Risk Seminar, held in Bordeaux in May. This event started out years ago as a relatively lowkey affair to focus on a few core insurance challenges as a group. Now, the seminar brings together the whole market and spans a range of topics with that same determination to better understand emerging risks. This year, for instance, the agenda included sessions on first-of-a-kind Power-to-X technologies and on harnessing advances in AI to improve asset management strategies.

Not only has the number of guests changed at this event, but so too has the profile of our guests. Our Risk Seminar is increasingly populated with younger faces who are bringing fearlessness in the face of new insurance challenges. This is indicative of a changing workforce; one that is more at ease with the digital world we live in. The question is, how can we complement the fresh ideas and digital literacy of the new breed of insurance professional with old-school, grey-haired insurance experience and deep understanding of risk? This type of collaboration is one of the key benefits of our events.

I believe there are four values that insurers today must prioritise to be successful in the green transition:

1. Knowledge - this is crucial to our business at TMGX, it is what we are known for and expanding knowledge is the only way of truly keeping pace with the rate of change in our industry
2. Vision - our goals at TMGX are rightfully ambitious because the acceleration of the green transition depends on how prepared insurers are to follow its growth trajectory
3. Consistency - TMGX is consistent on price and on claims, and this is what gives our clients the confidence to work with us again and again
4. Transparency - all of these values are grounded in transparency. At TMGX we firmly believe that this is the way to build a resilient industry.

If we can take these core values forward in everything we do, insurance can become the enabler of growth it is meant to be, rather than an inhibitor.

Fraser

Olly Litterick, Head of Renewables

As Fraser said, our market is defined by change. Looking at the market’s development over the past few years, I would also add ‘complexity’ to this definition. Our market has evolved to refine a range of green transition products, from traditional renewable energy to more experimental green molecules, and as a result the business of insuring projects has become far more complex. This calls for discipline, adaptability, and stability in our underwriting.

In addition to the growing risk exposures Fraser refers to, the renewables sector is maturing with sophisticated financial structures, greater support mechanisms at a national level, more diverse deployment of technology types, and more nuanced project profiles seeking tailored insurance products. The renewable energy insurance market is no longer simply about covering property damage. It has become a highly complex ecosystem of risk transfer, capital allocation, and resilience planning.

This is one of the key findings of our new report ‘Co-location, Co-location, Co-location’, which we are pleased to exclusively share with readers today – you can get your copy here [LINK]. We have seen the rise of co-located, hybrid project development, where the strategy is to integrate multiple technology types to create energy systems of greater value for portfolio owners, the grid, consumers, and the planet.

Insurers today are familiarising themselves with new revenue models and risk exposures at renewables-plus-storage sites, but in future we will need to apply these insights to projects using less mature technologies for the production of green molecules, such as green hydrogen. Today’s report is a first attempt to address this growing complexity and open up dialogue about the challenges that await us in supporting more elaborate green transition projects.

Underwriting discipline is paramount as the renewables sector breaks new ground. Natural catastrophe losses reinforce this point. TMGX recently shared an update on the impact of extreme weather on insured projects [LINK], highlighting that 2026 has already delivered over $300m in insured renewables losses ahead of the traditional extreme weather season. Historically, we have seen the insurance market take risks in areas with high natural catastrophe vulnerability and some capacity was burned as a result. As more regions become exposed to extreme weather, underwriters must keep their discipline to write sustainable business.

Reassuringly, we are seeing signs of improved adaptability in the insurance market. In the case of extreme weather:

• Catastrophe models are being adjusted to better capture site-specific climate risks
• Underwriting criteria in high-risk geographies are becoming stricter
• The burden of catastrophe exposure is being spread more equitably with reinsurers and capital markets
• And the insurance market is being engaged with earlier to help design more resilient projects.

This demonstrates what we can achieve as an industry when we galvanise around a clear challenge to sector growth.

The renewable energy line is no longer viewed by insurers as a low-loss business. It is a sector where risk is growing and this is at odds with the insurance market’s desire for stability. However, this is what underwriters must work towards to fulfil the role of insurance in the green transition. Insurance is there to provide the reins so that the change and complexity that follows accelerated growth can be managed and channelled.

In our new report, I argue that “Greater data transparency, more focused industry collaboration, and the innovation of new insurance products tailored to hybrid projects all have a decisive part to play in delivering the next phase of sustainable market growth.” These are the ingredients for stable underwriting and are the reason why we have kept our long-term clients, brokers, and trusted partners for more than two decades, and why we are able to continually build new relationships.

Despite the rising complexity of insuring renewable energy projects, we feel that we are better placed than ever before to work with, and not against, the industry with discipline, adaptability, and stability, to support its long-term ambitions. It has been a fantastic first year as TMGX and Fraser and I are excited about what the future holds for the company. On behalf of the entire TMGX team, we wish you every success for the rest of 2026.

Olly