Marsh, Liberty Specialty Markets, and AIG collaborate on re/insurance facility for hydrogen projects
Marsh has collaborated with Liberty Specialty Markets and AIG to launch a new re/insurance facility that provides capacity to green and blue hydrogen energy projects.
The facility will provide up to $300m of cover per risk for the construction and start up phases of hydrogen projects globally. 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.
Andrew George, global head of energy and power at Marsh Specialty, 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.”
He added: “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.”
There, the firm writes: “Hydrogen projects can involve complex ownership and contractual arrangements that require comprehensive risk management solutions to protect the interests of all project stakeholders. During construction and operation, the core suite of required insurance may include property damage risks, marine cargo, business interruption, general third party liability, and contingent delay-in-start up insurance.
Source: Reinsurance News, https://www.reinsurancene.ws/marsh-liberty-specialty-markets-and-aig-collaborate-on-re-insurance-facility-for-hydrogen-projects/