Hydrogen projects drive insurance premiums past $3b by 2030

In APAC, hydrogen is gaining traction as part of the region’s clean energy shift. 

The insurance market for hydrogen projects are expected to surpass $3b in premiums in by 2030, according to Allianz Commercial.

The global push for hydrogen as a key energy source is expanding, with over 1,500 projects now planned—up from just 200 in 2021, marking a 600% increase, the insurer said. 

Around 60 governments have adopted national hydrogen strategies. 

According to the Hydrogen Council and McKinsey, $680b in investments will be needed by 2030 to realise these plans, significantly increasing demand for insurance to manage related risks.

Europe currently leads the development with 617 projects and $199b in announced investments. 

Hydrogen's future, however, depends on several factors including policy, trade, demand, and infrastructure costs. 

Safety and risk management remain central issues due to hydrogen’s flammability and potential for explosion. 

Across industries, scaling up hydrogen will require stricter safety measures and robust insurance backing.

Anthony Vassallo, Global head of Natural Resources at Allianz Commercial, said insurers play a key role in enabling hydrogen growth through risk advice, coverage, and innovation support. 

He emphasised the need for industry collaboration to build expertise and manage challenges.

In Asia-Pacific region, hydrogen is gaining traction as part of the region’s clean energy shift. 

It has long been used in chemical and refinery sectors, but its expansion into power generation, transport, and marine industries introduces new risks. 

These include hydrogen embrittlement, cryogenic fuel handling, and the potential for accidental leaks or explosions. 

Trent Cannings, Regional head of Natural Resources & Construction at Allianz Commercial Asia Pacific, noted that cross-border collaboration in storage and transport infrastructure will be critical for hydrogen rollout in the region.

Insurers expect hydrogen-related exposure to impact multiple lines of business. 

Vassallo said Energy, Natural Resources, and Liability will likely see the biggest effects in the next five to 10 years, followed by Property and Marine.

Hydrogen tanks