Insurance buyers expect their insurer to be able to return them to financial health when something unforeseen happens. For that reason insurance companies are generally among the most conservative financial service institutions. Insurers don’t address risks they don’t understand or can’t quantify. With this said, it is noteworthy that the property, liability and life segments of the insurance industry are all very active in their support on renewable energy today in two very specific ways.
First, as a direct result of the demonstrated improvements in manufacturing, construction, operations, and the overall risk profile of renewable energy, insurers now actively compete to insure the risks on the basis of pricing and coverage conditions. Today, there are at least 15 major international and numerous regional insurers addressing various forms of risks directly related to renewable energy projects – many of them with divisions now focused exclusively on renewable energy business. Insurance coverages are much broader, and costs are a fraction of what they were just 10 years ago. In fact, issues in financing renewable energy projects are driving some of the most innovative changes under consideration in property and liability insurance today. Finally, because renewable energy presents a clear opportunity for business growth, the number of insures competing for business is forecasted to increase, leading to an even more robust competitive market favorable for insurance buyers. Keep reading →