Daily Insurance Industry News
Daily Insurance Industry News
Thursday 18th of October 2018
May 17, 2011

Marsh launches solar projects policy

by Gill Montia

Story link: Marsh launches solar projects policy

Marsh has developed an insurance contract that provides coverage for project companies and operators in the solar, or photovoltaic, renewable energy sector.

According to the broker, worries about industry stability mean that banks currently only give limited recognition to long-term guarantees provided by solar module manufacturers, as a basis for approving financing.

Typically, manufacturers provide their customers with a 25-year guarantee but if the firm becomes insolvent, any performance guarantee insurance expires when premium payments stop.

The new offering from Marsh provides coverage against default risk on long-term guarantees and thus improves financial viability for photovoltaic systems, especially when combined with an all-risk insurance policy against damage to property and a reduced yield risk policy against decreased output.

Marsh Germany’s head of power team, Dr Michael Härig, comments: “As well as improve financing capabilities, this new contract could help in negotiations over interest rates levels, providing opportunities for additional savings.”

He adds: “As risks change, it is imperative that the insurance market provide these kind of tailored hedging solutions not covered by traditional insurance.”

Last year, Munich Re introduced the first insurance solution to provide an effective performance warranty for certain types of solar panel in the US.

The plan covers systems manufactured by SolFocus and was devised in collaboration with the manufacturer and broker, Woodruff-Sawyer & Co.


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