Hydrogen insurance market seen topping $3B by 2030

The global insurance market for hydrogen is projected to exceed USD 3 billion (approximately PHP 176 billion) in premiums by 2030 as investment surges and risks grow across the expanding hydrogen value chain, according to Allianz Commercial.

Demand for hydrogen is forecast to increase fivefold by 2050, while clean hydrogen production is expected to account for 60 percent of total supply by 2035, backed by government policies and more than 1,500 planned projects worldwide.

This marks a 600 percent increase in project count since 2021, with global investments potentially reaching USD 680 billion (PHP 39.9 trillion) by 2030, according to estimates by the Hydrogen Council and McKinsey & Company.

“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,” said Anthony Vassallo, global head of natural resources at Allianz Commercial.

“Collaboration and knowledge-sharing within this industry are essential for developing best practices and building expertise,” he added.

The insurance industry’s support is critical to managing the complex risks associated with hydrogen—from fire and explosion to embrittlement and high-pressure leaks—especially as the gas is deployed across sectors such as transport, energy, marine, and logistics.

Hydrogen has long been used in chemicals and refining, but its expansion into power, shipping, and heavy industry introduces new operational hazards and infrastructure challenges, requiring enhanced insurance solutions.

Energy facilities using hydrogen will have to manage extreme heat, flammability, and cryogenic storage, while hydrogen-powered vehicles will need robust containment systems to avoid embrittlement and accidental discharge.

Port and bunkering facilities face contamination and explosion risks from handling cryogenic fuels, making insurance coverage and loss prevention critical at every link in the supply chain.

“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,” said Trent Cannings, regional head of natural resources and construction at Allianz Commercial Asia Pacific.

Cannings added that regional cooperation in storage and transport infrastructure is accelerating hydrogen deployment in Asia.

Risk mitigation remains essential as hydrogen’s unique properties require rigorous engineering, safety protocols, and employee training to reduce the risk of catastrophic events.

Hydrogen-specific building designs, open-air site layouts, and leak detection systems are recommended to minimize potential explosions and fire damage, while hydrogen-compatible materials can counteract embrittlement in pipelines and storage tanks.

“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,” Vassallo noted.

He said that energy, natural resources, and liability insurance products are likely to bear the biggest exposure in the coming five to 10 years, with marine and property lines also significantly affected.

As hydrogen becomes a critical pillar of the global clean energy transition, insurers are positioning themselves as enablers of safety, investment, and resilience within the sector.