Many regions are bracing for cold temperatures in the upcoming months. Meanwhile, energy costs are rising globally due to geopolitical, economic and environmental factors. The U.S. Energy Information Administration projected half of U.S. households will spend 28 percent more this winter to heat their homes. In Germany, the government is setting aside five percent of its annual GDP to help the country get through the coming winter, as energy prices are expected to climb to unprecedented levels.

At the start of 2021, Aon explored the major challenges – and opportunities – facing the energy sector in the coming years. Aon’s Revisiting the Future of Risk: Energy in 2022, highlights three themes of particular interest to energy  companies: divestment pressure, supply chain resilience and the war for talent. According to Henric Gard, EMEA Energy Industry Leader at Aon, “The energy sector is undergoing a fundamental change, and the more we can understand and identify the challenges it faces, the easier it will be to navigate as an industry.”

This week, Aon and Lloyd’s released Ukraine: The (re)insurance industry response which explores the role of the (re)insurance industry in building resilience against the consequences of the conflict in Ukraine. The report underscores the reliance of Europe on energy imports from Russia, including accounting for almost 40 percent of all natural gas consumption by the European Union . Additionally, the report notes there may be an increased demand for renewable energy and storage solutions as companies seek energy independence in the face of high energy prices resulting from the conflict. Learn more in The Insurer.

Check out additional resources from Aon as they help clients mitigate inflation risk as it is continuing to rise around the world.