The renewable energy sector has seen tremendous growth over the last decade. Significant innovations in solar, wind, fuel cell, biomass, battery storage and other critical energy technologies are taking place every year. In most cases these innovations result in improved, better performing technologies. However, the initial releases of these technologies face unknown futures.
While accelerated lab and field testing data are crucial to future predictability, they are still just a proxy for expected performance. New Energy Risk, founded in 2010, recognized this challenge and saw the opportunity. Pulling together a team of insurance underwriters, actuaries and engineers who specialize in renewable energy technologies, energy project financiers, and risk management consultants, we developed expertise in understanding, quantifying, and underwriting technology performance risk. Our insurance solutions leverage our proprietary system performance data and engineering, actuarial, and financial models.
New Energy Risk is not an insurance company or a brokerage firm. Through our sponsor XL Catlin, we formed an agency to work with brokers, buyers (clients), and financiers to underwrite insurance solutions that efficiently transfer technology risk and reduce the uncertainty in long-term project performance. These solutions enable a reduction in the total cost of financing, encourage customer adoption, and in certain cases even make the financing and sales possible.
In our experience rarely can these solutions be provided by standard insurance products in the market today. Leveraging all available data and information, we apply a data driven, engineering based analysis to each engagement, tailoring the model and the risk management solution to the specific case in order to define the optimal risk transfer solution. We have witnessed firsthand that data driven risk management and insurance solutions ultimately lead to lower costs of financing.
At New Energy Risk our goal is to create customized insurance policies that fit the need of the client, enable long term financing, increase customer adoption, and are attractive to insurers.