Philadelphia Insurance Companies: Powering the Green Transformation
The shift toward sustainable energy sources is well underway, and companies are increasingly turning to environmental insurance partners for support. Philadelphia Insurance Companies (PHLY) is leading this charge with its environmental underwriting initiatives. This move, often referred to as the ‘green transformation,’ emphasizes the growing adoption of renewable energy solutions such as solar, wind, and geothermal power.
Jamie Langes, Vice President of Environmental Underwriting for PHLY, stated, “As companies invest in the green transformation and shift away from traditional energy sources, they are exploring the alternative energy space. Insurance can play a key role by providing the financial backing these companies need through tailored policies and programs.”
Green energy initiatives are a major investment for businesses.
Driving Interest in Green Transformation
Companies are drawn to green and alternative energy solutions for various reasons, including sustainability and profit. Insurance companies are also taking note, with some reducing support for traditional energy sources to foster investment in green energy.
“Carriers are actively engaged in identifying strategies for deploying their financial capabilities, making conscious decisions about coverage offerings to support the green transformation,” Langes noted.
Green energy is vital for a business’s future, delivering a renewable energy supply. As interest in solar, wind, and geothermal grows, so does financial support. Langes added, “The more companies invest in the green transformation, and insurers support those operations financially, the faster the market will grow.”
How Insurance Supports the Transition
Entering the green energy sector requires careful planning; that’s why partnering with an environmental underwriting team with expertise is so valuable. To manage risk and secure proper liability transfers, businesses must have the support of the insurance market. PHLY supplies the necessary financial resources, enabling businesses to operate successfully. “Insurance capacity continues to increase, and rates support new ventures through a balance of coverage and premiums,” said Langes.
Insurance offers a risk management perspective to help cover liability and start-up expenses. With an experienced underwriting team, businesses can ensure that their risk management is sound. “We are integrating green transformation options into our coverage positions, and we are investing in these initiatives as we would for any operation,” Langes said.
PHLY’s expertise and long-term vision embrace its role as a financial vehicle for advancing green technology and transformation through insurance.
Jamie Langes, Vice President of Environmental Underwriting for Philadelphia Insurance Companies.
Balancing Traditional and Alternative Energy
Underwriting for traditional energy sources benefits from historical data, which aids in decision-making. “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.
Underwriters must consider both sides of the energy industry as they move through this transition. This calls for a review of coverage options, rates, availability, and detailed terms and conditions to best serve green transformation businesses.
“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,” Langes said. “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
PHLY’s team is committed to deeply understanding its client partners’ businesses. Companies joining the green transformation can rely on PHLY’s environmental underwriting team. “We’re proactive in our approach, more than reactive,” added Langes. “This means that what’s next, what’s new, what our insureds’ needs are, remains at the forefront of our decision making. 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.”
As part of Tokio Marine Group, PHLY can leverage its expertise to evaluate societal changes and community interest in green transformation. They have an established environmental team with extensive experience in the marketplace.
“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 approach has enabled PHLY to offer tailored coverage. Underwriters are closely monitoring companies transitioning to alternative energy solutions and staying informed about related fields.
