Re/insurers can play key role in development of hydrogen economy: Swiss Re
A new report from Swiss Re states that reinsurers and insurers can play a key role in the development of the hydrogen economy through risk management knowledge and transfer.
The report, De-Risking the Hydrogen Economy: Bridging the Protection Gap, that while the risks are already known to reinsurers and insurers, their scale is changing as economies attempt to move to net zero.
The authors write: “The risks involved around handling hydrogen are not new. The insurance market has long been underwriting a suite of associated risks. However, the size and scale of exposures will be larger.”
They added: “Moreover, new players are entering the hydrogen economy and there is a risk that some may lack experience in handling hydrogen. Re/insurers can play a key role in the development of the hydrogen economy by providing risk management knowledge and risk transfer options at select points of the value chain.”
The report lays out on several risks in the production, storage and transmission, and distribution parts of the value chain. Risks within production are related to construction, machinery breakdown, business interruption, fire and explosion, and the environmental liability due to the reversal of stored carbon.