Energy efficiency investment risks can be reduced, said HSB Engineering Insurance at ESCO 2015
Specialist engineering and construction insurer HSB Engineering Insurance (HSB), part of Munich Re, presented the concept of insurance acting as a catalyst for energy efficiency investment at ESCO 2015, Europe’s largest conference for energy performance contracting.
Paul Cullum, Product Development Manager at HSB Engineering Insurance, addressed the audience and explained that innovative insurance policies can allow an investor or developer to offset the potential risks, and associated costs, with installing energy efficiencies within buildings.
HSB recently launched an energy efficiency insurance product which offers a number of significant benefits to those receiving, delivering and funding energy savings. This includes cover for material damage (including equipment breakdown) of the installed systems, business interruption (protecting against loss of revenue in the event of equipment failure) and asset performance insurance covering a shortfall in energy savings actually achieved.
Paul commented: "Speaking at ESCO 2015 was an exciting opportunity as the conference focuses on important policy developments, as well as new initiatives to expand the energy services market."
"At HSB Engineering Insurance, we recognise the increasing need for commercial properties to become more energy efficient; around 40% of all energy we consume is used by buildings. If an investor can be certain that efficiency savings are improved, through confidence in the technology and supported by a comprehensive insurance policy, then there is a much greater chance of investment, as the risks are greatly reduced. There are many billions of Euros of investment available for energy efficiency projects but there is clearly still a disconnect between ESCOs and funders. We saw an opportunity for a product which could provide the right amount of insurance cover to protect energy efficiency projects, enhance their bankability and help improve access to funding, therefore becoming the catalyst for investment."