Philadelphia Insurance Companies and the Green Transformation
Businesses across various sectors are increasingly embracing the green transformation, a shift towards environmentally sustainable energy solutions. Philadelphia Insurance Companies (PHLY) is at the forefront, providing expert environmental underwriting support to companies investing in alternative energy sources such as wind, solar, and geothermal. This shift represents a significant opportunity for environmental insurers and their clients.
“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.
Why the Shift to Green Energy?
Several factors drive the interest in green and alternative energy solutions. Sustainability is a primary motivator, coupled with the potential for profit. Insurance companies are taking notice, with some reducing support for traditional energy to bolster green energy investments.
“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.
Renewable energy provides a sustainable future for businesses with the necessary financial support to sustain these endeavors.
Insurance’s Vital Role
Venturing into green energy requires a strong environmental underwriting team that understands the complexities of this transformation. Insurance plays a crucial role by providing financial support, which businesses need to secure adequate liability transfer and mitigate rising risks.
“Insurance capacity is growing, and rate is supporting new ventures from a balance of coverage and premium,” noted Langes.
Insurance offers a risk management perspective to stabilize start-up costs and address liability exposures. Experienced underwriting teams are vital for navigating the transitions.
The Underwriting Balance
An essential aspect for underwriters is to ensure the proper handling of new green transformation energy markets as well as the more established traditional energy sources.
While traditional energy underwriting benefits from historical data, green energy sources are still relatively new. Underwriters must consider rates, coverage options, and detailed terms and conditions to service these transforming companies. Companies that still utilize traditional energy sources while integrating green practices pose a unique challenge for insurers.
PHLY’s Approach to Environmental Underwriting
PHLY focuses on understanding its clients’ businesses, a proactive approach to risk management, and the insurance needs of their clients.
“We’re proactive in our approach, more than reactive,” emphasizes Langes. “This means that what’s next, what’s new, what our insureds’ needs are, remains at the forefront of our decision making.” PHLY has developed an environmental underwriting team with extensive industry expertise, including technical knowledge of sustainable energy solutions.
“We not only have the experience but also the expertise,” says 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.” This expertise allows PHLY to offer custom coverage and remain informed on industry developments.
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