Philadelphia Insurance Companies and the Green Transformation
Businesses are increasingly embracing the ‘green transformation’ and seeking sustainable energy solutions such as solar, wind, and geothermal. Philadelphia Insurance Companies (PHLY) are providing environmental underwriting support to help companies navigate this transition.
“As companies invest in green transformation, and begin shifting their business models away from exclusive investment, use, or support of traditional energy sources like petroleum and coal, they are starting to look at the alternative energy space,” said Jamie Langes, Vice President of Environmental Underwriting for PHLY. “Insurance can champion this repositioning by supplying financial support needed to companies engaged in green transformation through policies and programs.”
This shift toward renewable energy is generating significant interest from insurance companies. Some are even reducing their support for traditional energy sources to promote investment in green energy.
“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,” Langes explained.
Green energy presents a renewable energy source, helping businesses secure their future. As interest grows in solar, wind, and geothermal, financial support also increases to foster these endeavors. There’s a sense of expanding opportunities in this sector.
How Insurance Plays a Role
Venturing into green energy requires careful planning, and a strong environmental underwriting team can guide this transformation. Businesses require backing from insurance to secure appropriate liability transfers and reduce rising risks.
“Insurance capacity is growing, and rate is supporting new ventures from a balance of coverage and premium,” Langes stated. Insurance provides a risk management perspective that helps sustain start-up costs and manage liability exposures. PHLY’s backing can be critical in these situations.
“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.”
Underwriting Challenges
Underwriting traditional energy sources benefits from historical data. In contrast, green energy and design risks are relatively new, with limited available data. Underwriters must consider rates, options, and terms for green transformation companies.
“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.”
PHLY’s Expertise
PHLY’s team is dedicated to understanding its clients’ businesses thoroughly. They are “proactive in our approach, more than reactive,” according to Langes. PHLY’s underwriters often come with extensive experience from the consulting field, which they leverage to collaborate and inform brokers.
“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.”
PHLY’s commitment has enabled competitive and tailored coverage, keeping underwriters informed of industry changes. Their expertise helps them navigate the green transformation process, providing insurance support to the businesses that are involved.
