Avoiding a Hot House World

How to Avoid a Hot House World

Avoiding a Hot House World

Three insurance scenarios to inspire innovation and growth in hard to abate industries

As industry landscapes evolve with unprecedented speed towards Net Zero goals, the insurance sector stands at the forefront of a transformation that demands rapid adaptation and innovation. 

Risk profiles across hard to abate sectors – eminent for their significant greenhouse gas emissions – are not just shifting, they are revolutionizing. The insurance industry has a key role to play in facilitating transition investments, protecting green assets, and helping to manage the risks of clean technologies, sustainable supply chains and business models.

This whitepaper, a collaboration between Aon and AXA XL, explores three potential scenarios with detailed projections on investment trends, policy shifts, and technology adaptation across five key sectors (energy, transport, heavy industry, buildings and construction, and agriculture and forestry) to help leaders insuring hard to abate sectors make better decisions at pace.

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As employer-sponsored medical plans become a larger part of total rewards spend, and pressure mounts to accurately forecast and manage costs, we hope you find the information on this report valuable.

Wouter Bosschaart
Director, Strategy and Technology Group

Key Findings:

  1. Heavy industry, transport, and energy offer the greatest opportunities for growth, expected to generate annual insurance premium growth of above 11 percent between 2030-2050.
  2. Despite shifts in technology and risk, traditional insurance products remain essential to core industry growth and will account for the largest proportion of transition-related premiums by 2050.
  3. Developing the skills and expertise to underwrite emerging technologies like renewable energy and carbon capture will allow insurers to unlock longer-term opportunities.

Strategic insights in this whitepaper will enable insurers to support the transition as they lean into risk, engage with customers, and stay relevant in hard to abate segments, and embrace profitable growth opportunities.

Download our whitepaper now and leverage detailed projections to guide your decision-making and harness potential.

11%

Heavy industry, transport, and energy are expected to generate above 11 percent annual insurance premium growth between 2030-2050.