Australia has set an ambitious target of achieving 82% renewable energy by 2030. However, with this goal unlikely to be met, reliance on fossil fuels is expected to remain significant for longer than initially planned.

At the same time, insurers are reducing their underwriting exposure to coal and fossil fuel projects while expanding capacity for renewable energy. Although this shift supports the energy transition, it introduces risks stemming from an insurance gap between the fossil fuel and renewable sectors.

Jillian Pancott, Director at Sedgwick and finalist in Wotton Kearney’s Turning Point 2024/25 Competition, addresses these challenges in her insightful paper, A Balancing Act: The Risks of Reducing Insurance for Australia’s Fossil Fuel Sector Amid ESG Pressures.

In her submission, Jillian provides a detailed analysis of the complex balancing act insurers face, exploring how Australian insurers can manage this transition without transferring costs to the economy through higher electricity prices, brownouts, or blackouts.

Her paper also examines the composition of Australia’s current energy market, the broader implications of a net-zero underwriting portfolio, and practical solutions for the insurance industry. Jillian was supported by Rachel White, Partner at Wotton Kearney (Sydney), in this work.

As a finalist, Jillian was awarded $2,500 in travel vouchers to support her professional development.

Stay tuned for further updates, as we share these excellent papers and provide details for the next edition of Turning Point 2025/26.

Download your copy of Jillian’s paper by completing the form below.