Posted on 29 Nov 2010
In cooperation with the US company Energi, Hannover Re has developed an insurance product for businesses, municipalities and homeowners. The financing of energy efficiency concepts can now be secured through the so-called "Energy Savings Warranty Program".
"It is our hope that this new insurance product will create incentives to invest more heavily in energy-saving technologies. In this way it can help to reduce energy consumption – and hence ultimately promote climate protection", Ulrich Wallin, Chief Executive Officer of Hannover Re, emphasised.
The "Energy Savings Warranty Program" provides an insurance backstop for energy saving guarantees in the United States. Such guarantees are given by Energy Service Companies (ESCOs) that make energy-improving upgrades to buildings by, inter alia, enhancing insulation or optimising heating technology or air-conditioning systems. If the remediation fails to deliver the promised energy savings, the ESCOs undertake to make deficiency payments. In future, these can be covered under Energi's "Energy Savings Warranty Program". International Insurance Company of Hannover Ltd., a UK-based subsidiary of Hannover Re, is the insurer of the policies.
Given that ESCOs in the United States now also have the option to cover the promises they make through insurance and thereby avoid possible liabilities in their balance sheets, Hannover Re anticipates stronger demand for energy-saving measures going forward.