AXA XL, a global insurance and reinsurance company and part of the AXA Group, has published the report Future Energy Finance: How Captives are Powering Renewable Growth, which considers how the transition towards lower-carbon energy systems is increasing demand for adaptable risk financing approaches, with captive insurance arrangements highlighted as a key mechanism for supporting innovation and investment across the sector.
Produced by Captive Intelligence in collaboration with AXA XL and broking group Aon, the report is available via Captive Intelligence.
It notes that captives can help organisations manage uncertainty linked to early-stage renewable technologies where historical performance data may be limited, while also providing more consistent access to risk capital and stronger oversight of risk management practices over longer investment horizons.
The report also points to their role in enabling structured risk sharing across complex project arrangements, helping to align insurance and financial planning, as well as expanding available market capacity by supporting technologies as they progress from pilot schemes towards wider commercial deployment.
Vicky Roberts-Mills, Global Head of Energy Transition at AXA XL, commented: “By 2030, global renewable capacity is expected to increase by 4,600 GW, with solar and wind technologies leading the charge, accounting for nearly 80% of new capacity. As renewable projects become more complex and interconnected, captives offer a flexible and strategic platform to manage risks holistically across the value chain.”
Marine Charbonnier, Head of Captives and Facultative Underwriting, APAC & Europe at AXA XL, said: “Captives are not a substitute but a complement to traditional insurance markets. They provide the control, flexibility and stability needed for organisations to navigate the complexities of a shift toward new energy sources.”
Aon’s Guido Benz, Head of Global Renewable Energy for Commercial Risk, added: “Captives can act as a bridge, helping new technologies move from prototype phase into mainstream insurable assets and effectively helping to kick-start market adoption.”
