Zurich, Aon Launch New Insurance Coverage

In a move to support net-zero transition, Zurich Insurance Group (Zurich) and Aon have launched a clean energy insurance facility, providing coverage globally for blue and green hydrogen projects with capital expenditures of up to US$250m.
The initiative, led by Zurich as the primary insurer and Aon as the exclusive broker, is designed to expedite the advancement of clean hydrogen projects. The initiative is part of Zurich's plans to facilitate the net-zero transition through proactive customer engagement, the introduction of innovative services, and the development of new products.
By de-risking hydrogen investments, Zurich and Aon aim to foster a more robust and resilient clean energy sector, ultimately contributing to global sustainability goals and reducing carbon emissions.
"Insurance is a key enabler to facilitate the net-zero transition, providing protection as well as risk expertise. Clean hydrogen has immense potential as an eco-friendly alternative to fossil fuels and we strongly believe it can play a critical role in the energy transition. We are proud to bring this ground-breaking initiative to the market together with Aon," says Sierra Signorelli, CEO Commercial Insurance at Zurich
The new multi-line clean energy insurance facility offers comprehensive coverage through a single integrated policy, encompassing construction, delay in start-up, operational cover, business interruption, marine cargo limits, and third-party liability. It also includes coverage for carbon capture, utilisation, and storage (CCUS) technologies, providing customers with a complete suite of solutions across the entire value chain of hydrogen production.
"Over the past two years, Zurich and Aon have conducted extensive research and engaged with customers to gain insights about the specific needs and challenges of developing blue and green hydrogen projects. Blue hydrogen is derived from natural gas and uses carbon capture technologies to reduce its carbon intensity; while green hydrogen is produced by splitting water into hydrogen and oxygen via electrolysis powered by renewable energy.
"Many developers and their capital providers have found it challenging to de-risk and secure adequate insurance coverage for the various phases of global hydrogen projects. This new solution caters to their unique needs, providing comprehensive coverage addressing the complex risks associated with hydrogen projects across the entire project life cycle." says Joseph Peiser, Global CEO of Commercial Risk at Aon.
The facility has already been oversubscribed by the participating insurers, significantly exceeding expectations. This demonstrates the market’s appetite for sustainable solutions and the insurance industry’s willingness to provide coverage for new risks.
Hydrogen only emits water when combusted and has diverse applications. It can fuel buses, trains and trucks for transportation, and be used in aviation and shipping through hydrogen-based fuels. Combined with renewable power generation, it can store and transport renewable energy. Hydrogen has the potential to replace natural gas for heating buildings and it is already used in various industrial processes such as refining petrol, manufacturing steel, treating metals, and producing chemicals.
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