Battery performance becomes insurable
Munich Re is the world's first insurer who has developed an insurance solution for battery performance. Thank to this innovation, the booming battery market can be provided with long-term performance guarantees, the intrinsic value of which is underlined by the new insurance product.
With the new coverage, battery producers will be able to insure their guarantee commitment towards the client. If, for instance, repair and replacement costs of defective or low-performing battery modules exceed a specific sum defined in advance, the insurance will bear the additional costs. In this way, the producer is able to settle his balance sheet.
Furthermore, it will be a lot easier to finance projects, as the maximum guarantee costs are limited by the insurance coverage. For investors, this is a decisive unique selling point. As a result, the expansion of battery capacity can therefore be facilitated significantly and there will be a higher reliability of renewable energies.
Peter Röder, Member of Munich Re's Management Board, says: "The insurance of battery performance is an important piece of the puzzle towards a CO2-free energy supply. For the first time, battery producers can insure the risk that their products do not perform as efficiently as promised". Thus, Munich Re proves its pioneering position in the protection of climate-friendly technologies.
(Source: Munich Re, press release published March 7, 2019, https://www.munichre.com/site/corporate/get/params_E-182587663_Dattachment/1717539/MunichRe-PM-2019-03-07_de.pdf )