Hannover Re, the world’s third-biggest reinsurer, plans to increase its coverage of energy-saving projects and weather-related risks.
“Renewable energies offer vast potential for reinsurers,” Michael Pickel, Hannover Re’s management board member in charge of the German reinsurance business, said today at a press conference in Baden-Baden, Germany.
In renewable energy, the Hanover, Germany-based reinsurer offers traditional property coverage as well as energy-saving warranties and protection against weather-related losses. The firm is working with customers including building associations, banks and property insurers to help them safeguard the building of low- or zero-energy homes and other energy-efficient technologies.
That form of coverage is already offered in the U.S. and also “has potential” in Germany, Pickel said.
Insuring renewable energy plants such as wind parks and solar plants as well as providing coverage for weather-related risks currently generates premium income in the “low-double-digit million-euro range” each at Hannover Re, Pickel said.
“We have started to cover the first offshore wind parks now after we have been more cautious with onshore plants, where there have been quite a number of claims in the past,” he said.