A new global survey reveals that insurance exclusions are a significant barrier for natural resources companies seeking to invest in clean energy technologies. According to the Willis Clean Energy Survey, 53% of companies report that blanket insurance exclusions hinder their ability to effectively transfer risks. Additionally, 48% of respondents pointed to issues with the limited duration and inflexibility of coverage.
Despite these challenges, companies are committed to increasing their investments in clean energy, with plans to boost spending on clean energy technologies by 34% in the next financial year. The survey, which gathered insights from 450 senior decision-makers across Europe, North America, Asia-Pacific, and Latin America, also highlights concerns about external risks, with 79% of respondents identifying supply chain disruptions and 78% citing geopolitical risks as major threats to the success of clean energy strategies.
While all natural resources companies have established clean energy strategies, the survey reveals a gap in implementation, particularly in the oil and gas sector. Only 36% of oil and gas companies have fully implemented their clean energy plans.
Rupert Mackenzie, Global Head of Natural Resources at Willis, emphasized the difficulties faced by companies in securing suitable insurance. He noted that challenges such as supply chain issues, technical failures, and project financing concerns further complicate the investment landscape. Mackenzie called for the insurance market to develop more tailored products to support the growing demand for clean energy investments.
This survey underscores the ongoing struggle for companies to overcome insurance-related hurdles while advancing their clean energy initiatives.
Related topics
