Marsh has launched the ‘first-of-its-kind’ insurance and reinsurance facility that provides insurance capacity for new and existing hydrogen energy projects.
The project was developed by Marsh in collaboration with insurers Liberty Speciality Markets and AIG. According to Marsh, the facility provides up to $300m of cover per risk for the construction and start-up phases of hydrogen projects globally.
Marsh’s facility is backed by a panel of A-rated global insurers and is structured flexibly to enable clients to choose coverage for the construction or startup phase, or a combined risks policy that extends to first year operations.
As well as providing risk transfer options for all construction and operational phase property damage risks, the facility includes marine cargo, business interruption, general third party liability, and contingent delay-in-start up insurance.
Marsh Specialty global head of energy and power Andrew George said, “Marsh’s facility is an important development for the insurance industry that will help enable the acceleration of the global energy transition to renewables. As the global hydrogen industry, especially green hydrogen, scales up rapidly to meet demand the facility will reduce the complexity of securing risk transfer options for operators of all sizes and boosts investor and lender confidence in achieving their ambitious project timeframes.
“Marsh continues to make significant investments in supporting the diversification of energy systems and is challenging insurance markets to keep pace with industry and improve risk management approaches and choices. We are committed to working with investors through all phases of their projects, to support their energy transition goals.”
Liberty Specialty Markets global head of energy Lesley Harding added, “We are delighted to collaborate with Marsh to bring this solution to market. This is another example of how Liberty is providing industry-leading technical expertise to assess, quantify and underwrite emerging technology risks. Our ambition is to be the strategic insurance partner for clients engaged in the energy transition.”
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