HDI Global sees insurance opportunity in East Asia’s renewable energy boom

The company plans to hire underwriters who understand the RE language, says Hong Kong branch CEO Michael Ahn.  

Corporate and specialty insurer HDI Global SE is forming a dedicated global team that will also offer a one-stop-shop solution to clients in the booming conventional and renewable energy (RE) sector in Greater China and South Korea.

The Germany based insurer’s energy team is made up of specialists across first-party, third-party, and specialty insurance lines. 

Initially, the new energy team will merge only the property and engineering teams, focusing on first-party lines, newly appointed CEO for Hong Kong Michael Ahn told Hong Kong Business. 

“Instead of talking to multiple departments, you have a single window to actually respond to the client's needs across the whole energy segment.”

The renewable energy sector is a significant segment for HDI Global given the rapid developments in the industry, particularly in the offshore wind sector, he pointed out.

Renewable energy insurance can help protect investments in renewable energy projects from risks such as contractual disagreements, supply chain issues, and construction problems. 

There is a global push for clean energy including in China, the world’s largest producer of solar panels, wind turbines, and batteries. Japan and South Korea, which are leaders in hydrogen energy and nuclear innovation, see these technologies as key solutions for energy security, climate change, and economic growth.

If Hong Kong achieves 100% renewable energy by 2050, offshore wind would account for 35% of its total energy mix, according to German online data platform Statista.

“The technology is moving so fast,” Ahn said. “For example, turbine development. You have turbines with blades that go up to 250 meters in diameter.”

To keep up with these tech developments, HDI Global is hiring talent who can “speak the same language” as their clients in the RE sector, the CEO said. 

The company could move beyond standard products and provide customised solutions by having experienced industry professionals as underwriters, Ahn said. “Eventually, we will be able to assess and underwrite these risks properly locally,” he added. “For now, as a partner in transformation to our clients, we work closely with our global network to service specific client needs from Singapore as the hub for our region.”

The global clean energy push and the Hong Kong government’s drive for sustainable business practices have also fuelled the growing demand for ESG (environmental, social and governance) liability coverage in Hong Kong, Ahn said.

ESG liability will be a key focus for HDI Global under Ahn, who assumed the role in November 2024.

”We have been offering more ‘E’ part of the coverage, environmental liability in the past, and we've added the social and governance part to provide a comprehensive cover,” he said. As the first insurer to introduce a comprehensive ESG liability product to the market, HDI Global rolled out its ESG liability coverage in November.

The insurer will concentrate on growing its ESG liability coverage globally, including APAC in 2026. It aims to secure at least 5% market share in all the major regions spanning an anticipated thousands of clients within the next five years.

Another priority for the insurer is corporate captives or self-insurance entities formed by large corporations to cover their own risks.

In his 2024-2025 budget speech, Financial Secretary Paul Chan said Hong Kong wants mainland and international companies to set up captive insurers in the city.

Ahn said HDI Global would play an advisory role for companies establishing corporate captives whilst also partnering with them as they assume greater risk retention over time.

HDI Global currently manages over 100 captive clients across more than 150 programmes, with its captive portfolio experiencing double-digit growth in recent years.

Whilst the APAC region currently represents only 5-6% of the global captive market, HDI Global sees substantial growth opportunities driven by rising domestic consumption and increasing sophistication in risk management approaches.

“Our established global expertise and comprehensive network capabilities position us ideally to capture the emerging opportunities in the APAC captive market”, said Ahn.

The company strategy is to identify profitable risks and segments, ensuring they are integrated into its portfolio, Ahn said. “We'll find ways to bring these risks and segments into HDI. We cannot leave any stone unturned.”

He added that they need quick turnaround times to stay ahead because East Asia is a highly competitive insurance market. “That means reviewing our processes and challenging anything that doesn’t add value.”

HDI Global, known for its expertise in first-party insurance covering property, energy, marine, and specialty risks, is expanding its risk appetite by boosting its liability insurance segment, the CEO said.