Philadelphia Insurance Companies Bolsters Businesses Embracing Green Energy
The transition to green energy sources is well underway, and businesses are proactively managing associated risks by partnering with environmental insurance providers. Organizations are increasingly turning to options like solar, wind, and geothermal energy. Insurance companies are actively supporting these shifts with financial backing, recognizing this as a promising growth area. Jamie Langes, Vice President of Environmental Underwriting for Philadelphia Insurance Companies (PHLY), states, “Insurance can champion this repositioning by supplying financial support needed to companies engaged in green transformation through policies and programs.”
Growing Interest in Green Transformation
Businesses are drawn to green and alternative energy solutions for various reasons, including sustainability goals and profit potential. Insurance carriers are also recognizing the importance of this trend, with some even reducing support for traditional energy sources to encourage investment in green energy initiatives.
“In the insurance sphere as a whole, carriers are actively engaged in identifying strategies to deploy their capacity, and making conscious determinations regarding coverage offerings that as a marketplace, we have committed to allot to green transformation,” explained Langes. Green energy offers businesses a renewable energy source and financial support to sustain ventures in solar, wind, and geothermal energy.
Insurance’s Role in Supporting Green Energy
Venturing into green energy requires meticulous planning. Environmental underwriting teams with insight into green transformation are therefore crucial. Businesses seeking alternative energy need support from the insurance market for liability and risk mitigation.
“Insurance capacity is growing, and rate is supporting new ventures from a balance of coverage and premium,” Langes said. Furthermore, insurance provides risk management to stabilize startup costs and liability exposures. An experienced team can ensure success by navigating complex underwriting.
“Green transformation is being leveraged as one component of our environmental approach,” said Langes, “and with [PHLY’s] expertise and experience, that approach is finding new ways to do business—including collaboration and a long-term vision, which embraces our role as a financial vehicle for progressing and assisting green transformation and technology through insurance.”
Navigating the Underwriting Balance
Underwriting teams must also consider the inherent differences between traditional and alternative energy sources when aiding clients. Historical data is abundant for standard energy sources, as the insurance market has ample actuarial data to gauge pricing parameters and risk acceptance.
“The insurance marketplace has ample actuarial data to gauge pricing parameters and risk acceptance vehicles from insuring traditional sources of energy long-term. As a result, insurers understand how to write that risk explicitly to make sure they’re able to not only support the business but also have the profitability to support their insureds should there be a claims situation,” Langes explained. “Green energy and design risks don’t have that much value proposition data yet since these exposures are still relatively new in the insurance marketplace as an insurable risk.”
Underwriters must adapt and closely examine rates, coverage, and terms to effectively support green transformation companies.
According to Langes, “The businesses have to coexist. Existing traditional energy sourcing companies that are investing in green solar, wind or geothermal will still have their original exposures; just less over time. The underwriting challenge, therefore, is that we must underwrite the two dichotomies, green transformation along with traditional, as companies transition forward.”
Environmental Underwriting Experts at Your Service
Insurance thrives on a deep understanding of a client’s risk management needs. PHLY’s team is dedicated to understanding its clients’ businesses. Companies transitioning to green energy can rely on PHLY’s environmental underwriting team.
“We’re proactive in our approach, more than reactive,” Langes explained.
“Investing in green transformation is a fairly new endeavor for many insurance companies, but we, at PHLY, have the advantage that we’re always willing to be engaged in the evolving conversation.”
PHLY integrates green transformation options and supports these initiatives. As part of Tokio Marine Group, PHLY leverages expertise to evaluate societal changes and community interest. The firm has built an experienced environmental underwriting team with experts from the consulting field.
“We not only have the experience but also the expertise,” said Langes. “Many of our underwriters come from the consulting field, so they also understand the technical aspects of sustainable energy solutions. We leverage that into collaboration, and towards being a resource for brokers to help them support their clients for insurance. Tokio Marine and PHLY bring all of that expertise to the table on products and service.”
This commitment has enabled PHLY to offer competitive and tailored coverage, and they are constantly expanding their knowledge base to serve companies in alternative energy and related markets.
