Ping An Property & Casualty Insurance Company Ltd., subsidiary of the Chinese financial services group Ping An Insurance Group of China Ltd., has today signed a cooperation agreement with Munich Re to jointly develop and offer insurance solutions for China's renewable energy industry. Such solutions, targeting Chinese renewable energy enterprises, will lead the field in the local market
The insurance solutions being developed by Ping An and a special project team from Munich Re will strengthen the renewable energy sector by de-risking often large-scale and capital-intensive technology projects. They allow manufacturers, plant operators and investors to limit their risks and thus constitute an important milestone in the implementation of renewable energy projects by providing critical financial protection.
China is already a leading manufacturer of renewable energy technologies. In 2010, the country invested almost US$ 50bn in green energy projects and tech-nology research. According to recent announcements, China plans to provide 500 gigawatts through renewable energy by 2020, largely from wind and solar power. The country has emerged as the world's leading producer of solar panels in the last two years. It accounted for almost half the world’s production in 2010, and its global market share is rising rapidly.
"Offering insurance solutions for China's renewable energy industry will not only enhance our product portfolio but also help us become China's No. 1 green insurance company. We are very pleased that Munich Re, with its global expertise and network, supports our aspirations", says Sun Jianping, Chairman and CEO of Ping An P&C. Ping An sees it as its responsibility to support and help enable innovative green technologies.
"Munich Re has seen strong demand for its innovative renewable energy insurance solutions worldwide. As interest from China is high, we believe that we can promote and develop our products through this cooperation", says Ludger Arnoldussen, Munich Re Board member responsible for Asia Pacific. He adds: "This cooperation reflects Munich Re's strength as a solution provider for complex new risks."
Munich Re has taken the lead in developing and selling renewable energy insurance covers. These solutions reduce the risks for investors, thus making large projects possible. Ping An and Munich Re will now work together over the following months to develop and roll out a first set of products and services, with a number of projects and clients already identified.