There is a “tremendous opportunity” for captive insurance companies in renewable energy, according to Robert Walling, principal and consulting actuary at Pinnacle Actuarial Resources.
Speaking in the ‘innovative spotlight: financing unique risk’ session at the Vermont Captive Insurance Association (VCIA) 2018 Annual Conference, Walling said he had been in conversation with multiple renewable energy programmes that week.
He explained: “One of my players of the week has been energy and I have been on calls with three different renewable energy programmes who were on calls this week.”
“Three completely different programme with three completely different solutions all facing similar challenges.”
“When you’re putting solar panels on a hospital, putting them in a residential neighbourhood and creating an energy cooperative, and when you’re setting up a power plant that supplements a local facility, the traditional insurance industry doesn’t cope well with that.”
“There are lots of different types of warranty programmes, construction defect programmes and financial products that have stepped into renewable energy.”
“Whether it is biodiesel or ethanol, solar or wind, there is a tremendous opportunity for the captive industry to step in and help those programmes succeed.”
Another of the panellists, Bob Gagliardi, global director of captive management and US front at AIG, was in agreement with Walling.
He commented: “When we talk about new technologies and new innovations, these are all things that the insurance industry doesn’t respond well to.”
