Business Daily Media

Men's Weekly

.

Allianz Commercial: Insurance market for hydrogen could reach more than US$3 billion by 2030

  • Hydrogen demand could increase fivefold by 2050, while clean production may rise to 60% by 2035, driven by significant investments and planned projects globally.
  • While market potential for hydrogen is very high, there are lots of unknown variables and risks for setting up a robust and secure infrastructure.
  • The insurance sector has an important role to play in the hydrogen economy, addressing risks across the supply chain, from construction and production through to the end user, and through direct investment.
  • SINGAPORE - Media OutReach Newswire - 30 July 2025 - Hydrogen will play a crucial role in driving the green transition with demand expected to surge in the coming decades. Around 60 governments have adopted hydrogen strategies, while the number of planned projects is already exceeding 1,500 globally compared to around 200 in 2021 – an increase of around 600%. To realize these projects, a total investment volume of US$680bn until 2030 may be needed, according to the Hydrogen Council and McKinsey, which will trigger a greatly increased demand for insurance to protect against risks as this investment is activated. Europe is leading the way by far with 617 planned projects and the highest total investment announced at $199bn.

    While the potential of hydrogen is undoubtable, there are still challenges and headwinds to overcome. The potential size and scope of the hydrogen economy will depend on a range of factors including the evolving political, trade, and economic environment, as well as demand. Policymakers and regulators need to address costs for the development of the infrastructure, so that scaling up at a competitive level towards other energy sources is possible. Across all industries, stringent safety measures will be vital to manage hydrogen's inherent risks. This is where the insurance industry comes into play. As hydrogen becomes integrated into the global economy, insurers can expect to see a significant increase in demand for coverage, with Allianz Commercial expecting the insurance market for hydrogen project coverage to grow to over US$3 billion in premiums by 2030.

    "Insurers have a key role to play in the development of the hydrogen economy, enabling investment and innovation, and providing risk management advice and guidance. Collaboration and knowledge-sharing within this industry are essential for developing best practices and building expertise. By addressing these multi-faceted challenges, the insurance sector can support the growth of the hydrogen economy and help facilitate the transition to net-zero emissions," says Anthony Vassallo, Global Head of Natural Resources at Allianz Commercial.

    Hydrogen offers great potential in Asia Pacific, but challenges and risks remain

    While it holds much promise and has been used in the chemical and refinery sectors for many decades, with risks such as fire, explosion and embrittlement being already well-known, the integration of hydrogen into other industries brings a range of challenges with currently planned mega projects requiring a scale-up of risk management. Energy production facilities will involve hydrogen storage and high-temperature combustion, which can lead to leaks and explosions. In transport, applications like hydrogen fuel cell vehicles will also face risks of hydrogen embrittlement and leaks. Port operators, bunkering facilities and fuel handlers will need to manage highly flammable and cryogenic hydrogen fuels, bringing accident and contamination risks.

    "Hydrogen holds significant promise in driving the energy transition across the Asia Pacific region, and we are already seeing power generation projects being developed that are designed to run with hydrogen as a potential fuel source. Further collaboration between countries can also be expected, in areas such as storage and transportation infrastructure, that will help to accelerate the deployment of hydrogen in the region. Allianz Commercial, with its proven expertise in low-carbon and energy sectors, is dedicated to supporting clients on their sustainability journey," adds Trent Cannings, Regional Head of Natural Resources & Construction and Head of Specialty Hub at Allianz Commercial Asia Pacific.

    Risk management and mitigation are crucial for hydrogen projects

    Given hydrogen's unique properties and high combustibility, ensuring safety throughout the value chain is crucial. Analysis of hydrogen-related incidents shows that undetected leaks can easily lead to explosions; equipment design, maintenance and training can help prevent the escape of flammable hydrogen gas, while the risks of ignition can also be reduced by locating hydrogen facilities in the open. Embrittlement risks can be managed using hydrogen-compatible materials and specifically designed resistant coatings. In addition to preventing incidents, organizations can take steps to limit the extent of property damage, business interruption, and third-party liability. Buildings and facilities should be designed and constructed to withstand natural hazards, fire and explosion, and limit damage to adjacent property and equipment. Robust hydrogen leak detection and isolation systems are also paramount. Human error is also a common factor in large losses. Operational, safety, emergency procedures, and training should be frequently updated, including having robust and well-rehearsed plans in place for accidental releases.

    "Given the wide reach of the hydrogen value chain and its potential uses, the implications for insurance could be far-reaching, touching on multiple sectors and lines of business over the next decade. However, from an exposure and potential claims perspective, product lines such as Energy, Natural Resources and Liability are likely to see the biggest impact from hydrogen risks over the next five to 10 years, followed by Property and Marine," explains Vassallo.

    Hashtag: #allianzcommercial



    The issuer is solely responsible for the content of this announcement.

    About Allianz Commercial

    Allianz Commercial is the center of expertise and global line of Allianz Group for insuring mid-sized businesses, large enterprises and specialist risks. Among our customers are the world's largest consumer brands, financial institutions and industry players, the global aviation and shipping industry as well as family-owned and medium enterprises which are the backbone of the economy. We also cover unique risks such as offshore wind parks, infrastructure projects or film productions. Powered by the employees, , and network of the world's #1 insurance brand, we work together to help our customers prepare for what's ahead: They trust us in providing a wide range of traditional and risk transfer solutions, outstanding and services as well as seamless handling. Allianz Commercial brings together the large corporate insurance business of Allianz Global Corporate & Specialty (AGCS) and the commercial insurance business of national Allianz Property & Casualty entities serving mid-sized companies. We are present in over 200 countries and territories either through our own teams or the Allianz Group network and partners. In 2024, the integrated business of Allianz Commercial generated around €18 billion in gross premium globally.

    News from Asia

    Jupiter Neurosciences Launches Nugevia™ Website and Opens Pre-Orders for Groundbreaking Longevity Supplements

    Targeting the Multi-Trillion Dollar Longevity MarketHONG KONG SAR - Media OutReach Newswire - 27 August 2025 - Jupiter Neurosciences, Inc. (NASDAQ: JUNS) ("Jupiter" or the "Company"), a clinical-s...

    HID Unveils Next-Generation FIDO Hardware and Centralized Management at Scale

    The Next Generation of HID’s FIDO Portfolio Features Hardware Authenticators and a Centralized Management Experience that Simplifies Passkey DeploymentHONG KONG SAR - Media OutReach Newswire - 27 ...

    Marking 30 Years of Excellence, EtonHouse International Education Group Pledges $3 Million to EtonHouse Community Fund to Strengthen Community Impact

    SINGAPORE - Media OutReach Newswire - 27 August 2025 - Marking 30 years of excellence in education, EtonHouse International Education Group, together with E-Bridge Pre-School, has pledged $3 milli...

    Trend Micro Named a Leader in Exposure Management by IDC MarketScape

    Measurable reduction of operational silos and cyber risk delivered with Trend Vision One™ Cyber Risk Exposure ManagementHONG KONG SAR - Media OutReach Newswire - 27 August 2025 - Trend Micro Inc...

    Genius Mind Expands Service Scope Beyond Academics to Include Coding, Financial Literacy, and AI Skills

    SINGAPORE - Media OutReach Newswire - 27 August 2025 - Genius Mind, one of Singapore's trusted names in home-based education matching, has announced the expansion of its offerings to include codi...

    Better Than Normal Launches Integrated AI Marketing and Coaching System for Singapore’s Service Professionals

    SINGAPORE - Media OutReach Newswire - 27 August 2025 - Better Than Normal Pte Ltd, a Singapore-based brand strategy and AI marketing consultancy, is transforming how service-based professionals es...

    Atlas Consolidated Secures USD 18.1 Million Series B Funding led by Tin Men Capital to Accelerate Global Adoption of HugoHub

    The Asia-based Banking-as-a-Service provider aims to significantly accelerate the growth of HugoHub, Atlas’s modular cloud-native digital banking platform SINGAPORE - Media OutReach Newswire - 27 ...

    Together Diamonds Launches in Singapore as the First Keepsake Diamond Atelier for Life’s Milestones, Not Just Memorials

    SINGAPORE - Media OutReach Newswire - 27 August 2025 - Together Diamonds, Singapore's first homegrown keepsake diamond atelier, has officially launched with a mission to transform life's mileston...

    TCMA leads Thai cement industry to reaffirm climate action leadership towards Net Zero 2050 at 2025 TCMA Technical Conference and Exhibition

    BANGKOK, THAILAND - Media OutReach Newswire - 27 August 2025 - Thai Cement Manufacturers Association (TCMA) successfully hosted its flagship event, the "2025 TCMA Technical Conference and Exhibi...

    Tanoto Foundation Develops Impactful Future Leaders at Tanoto Scholars Gathering 2025

    SINGAPORE - Media OutReach Newswire - 27 August 2025 - High unemployment among educated youth and a lack of leadership readiness are significant challenges on Indonesia's path to its "Golden Indon...

    Workplace DMs, Reinvented: Deputy Messaging, Purpose-Built For Shift-Based Teams

    Deputy, the global people platform for shift-based businesses, has launched Deputy Messaging, a fully integrated, real-time communication tool designe...

    Revolutionizing Fulfillment: How Virtual Warehousing is Changing the Game?

    The e-commerce landscape is evolving more rapidly than ever, and the way businesses are managing their fulfillment is also revolutionizing. At the...

    SME lender Dynamoney welcomes new CEO, Brett Thomas

    Strengthens growth ambitions and signals expanded offering Dynamoney, a leading commercial finance provider for Australian SMEs,  has today appoint...

    The cost of ignoring AI governance in business

    Artificial intelligence (AI) is no longer the promise of a distant future: it's active, embedded, and already shaping decisions across industries. H...

    Quickli launches new SMSF product as free beta for limited time only

    The leading technology provider for Australian mortgage brokers, Quickli, has answered the prayers of brokers yet again with the launch of a stand...

    Portable Monitors for Coding and Programming Students

    Today, coding and programming require more focus and efficiency. But, the most essential thing it demands is ample screen space. Students can stru...

    Sell by LayBy