Renewable Energy

Insuring a technology of the future

Finding a safe and equitable power supply for the earth's population as a whole that is both economically and environmentally sound is becoming a matter of increasing urgency. Limited fossil resources, the global climate change and the increasing energy requirements of a growing world population will mean the energy mix must change radically in the foreseeable future. Renewable energies can make an important contribution in this respect.

Munich Re supports endeavours to significantly increase the share of renewable energy in the world's energy supply as a means of reducing the emission of climate-changing greenhouse gases from the use of fossil fuels and hence of combating the causes of increasing losses due to weather-related extreme events. As a professional risk partner it supports technical developments in this field by providing the appropriate insurance solutions.

Renewable energies open up many opportunities, but at the same time present the players involved with major challenges, reliable insurance protection being the precondition for a willingness to invest in this area. Through our ongoing attention to the latest technological developments and the continuous enhancement of our expertise, we support our clients in this important market of the future as their preferred partner in risk, providing advice and innovative coverage concepts.

This applies to all forms of power generation through renewable energies. Whatever the issue, whether the building and operation of large and small wind or hydroelectric power plants, the large-scale or small-scale use of solar energy, the extraction of hot water from the earth's interior (geothermal energy) or the technological exploitation of biomass, renewable energies constitute relatively new ground, for which there are as yet no reliable loss statistics. Nevertheless, based on our expertise and experience of other technologies we, together with our business partners, are addressing the challenge of developing the financing and risk tools required in order to realise the market potential of renewable energies.

renewables 2004

At the first International Conference for Renewable Energies (renewables 2004), held in Bonn from 1 to 4 June 2004, Munich Re gave presentations based on its expertise in topics such as the scientific and technological principles involved, the risk circumstances, and the relevance of renewable energies in the insurance context. To coincide with the conference, Munich Re published the brochure "Renewable energies" which examines the underwriting aspects of the different approaches to producing energy from renewable sources.