$1B revenue goal by 2030: New unit TMGX aims for a 10% share of the $10B global green insurance market.
$500M single-risk coverage: TMGX will offer high-limit coverage for decarbonization projects, including hydrogen, nuclear, and EVs.
Creative risk solutions: Tokio Marine is pioneering products like tax credit insurance to unlock financing and lower borrowing costs.
Tokio Marine, Japan’s largest property and casualty insurer, has launched a new green insurance unit—Tokio Marine GX (TMGX)—with a bold target: $1 billion in revenues by the end of the decade.
The unit will focus on providing insurance and advisory services for companies transitioning to low-carbon operations, particularly in sectors like green hydrogen, shipping, cement, floating solar, and small-scale nuclear.
“We’re going to rip up the rule-card a little bit here,” said Fraser McLachlan, who leads both GCube and the new TMGX. “We’re going to look at some new technologies, we’re going to look at more sophisticated ways of being able to risk transfer business.”
TMGX will offer up to $500 million in coverage on a single risk and is targeting at least 10% of the global green premium income market, projected to hit $10 billion by 2030. The launch builds on the $200 million revenue base and 50-person team of GCube, its renewable energy arm—both of which are expected to double in the next few years.
“There’s a lot of sectors that really haven’t been served by the insurance space,” McLachlan noted.
The unit will not only address physical and operational risks tied to energy transition but also unlock financing for projects through novel offerings like tax credit insurance.
“It’s a win-win. Lenders love it as it transfers their risk; we like it, we’re getting a premium for a risk we’re comfortable with; and it allows the project to be financed at more equitable terms,” McLachlan explained.
TMGX may also work with managing general agents (MGAs) to accelerate market entry without the delay of building internal teams.
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“It’s a pretty quick win… it allows you instant access to a market,” he said.
The bigger goal? To prevent climate-linked infrastructure projects from stalling due to risk constraints.
“Unless people start coming to the table with more creative insurance solutions… we’re going to see a lot of these projects stall,” McLachlan warned.
Tokio Marine Group emphasized that its GX initiative aligns with global capital flows toward carbon neutrality, aiming to lead the market in underwriting, consulting, and deploying risk solutions for a decarbonized economy.
“We aim to contribute to social development and the growth of various industries by developing and providing insurance solutions and risk consulting… and supporting our customers and society in the transition toward carbon neutrality,” the company said in a statement.
As the global energy transition accelerates, Tokio Marine is positioning TMGX at the forefront of insuring the future.
Read the press release here.
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