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The 2026 Allianz Risk Barometer revealed surprising results for the renewable energy sector. This annual commercial risk ranking from corporate insurer Allianz Commercial, now in its 15th year, incorporates the views of 3,338 global risk management professionals on the top perils that matter to them in the year ahead.
Survey respondents included renewable energy risk experts who identified the threats that were keeping them up at night. Here’s how they ranked the top industry risks for 2026:
Natural disasters
Natural disasters takes first place this year with 56% of renewable energy respondents citing this risk as their main concern for 2026, up from second place in the 2025 survey. From an insurance perspective, economic and insured losses remained high, although below the ten-year average. The evolving nature of natural disasters continues to pose significant challenges to businesses and the (re)insurance industry. Insured losses from natural disasters are expected to reach $107 billion for 2025, according to Swiss Re – for the sixth year in a row they exceed $100 billion, while economic losses well exceed $200 billion.
A near-average hurricane season in the North Atlantic undoubtedly helped moderate losses this year. Of the 13 storms that formed, only three made landfall, and for the first time in 10 years, no hurricanes made landfall in the United States. Hurricane Melissa, however, served as a reminder of the devastation that a single storm can wreak.
Natural disasters are expected to remain high on the business risk radar. Climate change is making large tropical cyclones, like Hurricane Melissa and Super Typhoon Ragasa, more likely. All it takes is one typhoon in the right place to disrupt global supply chains.
Business interruption
Moving from first to second place this year for renewable energy risk experts is a consequence. Business interruption (36%)which includes supply chain disruptions. The year 2025 marked a shift toward protectionist trade policies and tariff wars that have sowed uncertainty in the global economy. It was also a year of regional conflicts in the Middle East and Russia/Ukraine, as well as border conflicts between India/Pakistan and Thailand/Cambodia and civil wars in Sudan, Ethiopia and Myanmar – a trend that will continue in 2026 with US intervention in Venezuela.
Global supply chain paralysis due to geopolitical conflict is the most plausible “black swan” scenario likely to materialize in the next five years (51%), according to Allianz Risk Barometer global respondents. Global trade and supply chains are being reshaped in a world divided by geopolitics, protectionism and the effects of climate change. In the past year alone, trade restrictions have tripled to affect an estimated $2.7 trillion worth of goods according to Allianz Trade – almost 20% of global imports – fueling trends such as “friendshoring” and regionalization.
When asked how their business is coping with changing trade and investment models, including the impact of tariffs, half of Allianz Risk Barometer respondents worldwide say they are exploring new markets and products. Nearly half (49%) are renegotiating and diversifying their supply chains, while a similar number say they are streamlining operations to reduce costs and/or investing in advanced analytics and supply chain management software. Just over a third (35%) are exploring offshoring and evaluating domestic manufacturing options, while 32% are looking to improve inventory management, including storing in free trade zones.
Despite lessons from the Covid-19 pandemic and geopolitical shocks such as the war in Ukraine, many companies lack confidence in the resilience of their supply chains: only 3% of respondents rate their supply chains as “very resilient” in this year’s Allianz Risk Barometer. As risks become more complex and interconnected, all businesses, including those in the renewable energy sector, will need to take a more holistic approach to resilience.
Climate change
Coming in third this year among respondents in terms of renewable energy is Climate change (33%)which includes physical, operational and financial risks associated with extreme weather conditions. 2025 was another year marked by record global losses and growing climate risk. The defining event of the year was the California wildfires in January, which occurred outside of the traditional fire season and spread rapidly through urban areas, causing insured losses of $40 billion, according to Swiss Re. Along with severe convective storms, wildfires were a leading cause of global natural disaster losses of more than $100 billion in 2025, including $89 billion in the United States.
When asked what aspect of climate change global risk managers fear most, business interruption topped the list at 63%. Supply chain reliance on just-in-time manufacturing and interconnected global supply chains means that a weather event in one region can have ripple effects globally. November floods in Southeast Asia are expected to reduce rubber production by up to 90,000 tonnes, resulting in an estimated loss of $140 million, raising concerns about global supply and price volatility of the commodity in 2026.
To read the full report, please visit: Allianz Risk Barometer 2026