Finance:

Insurance Products Can Help Grow Renewable Energy (Artemis.bm )

Report highlights how a new geothermal drilling risk insurance product for the Kenyan and Ethiopian markets can help develop the industry in East Africa.

The latest independent review from ClimateWise, which was prepared by PwC, highlights the important role that insurance, reinsurance and insurance-linked securities (ILS) can play in the financial fight against the perils of climate change.

Following the United Nations Framework Convention on Climate Change (UNFCCC) meeting in Lima, Peru of December this year, ClimateWise has released their 2014 report revealing what the organisation believes the insurance and reinsurance market could, and should be doing to help.

The study continues to praise the work of innovative products including the 1-in-100 initiatives, and the same praise is surely due to other ventures like the Indian national crop insurance scheme, the Caribbean Catastrophe Risk Insurance Facility (CCRIF) and the African Risk Capacity (ARC).

But, as ClimateWise acknowledges, perhaps more products like this are needed throughout the world; “There are further opportunities to innovate and develop new risk insurance products in emerging and developing markets for low carbon industries. One example is the development of a new geothermal drilling risk insurance product for the Kenyan and Ethiopian markets.”

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