NexPower, first client in Asia
Marsh, an insurance broker and risk advisory firm, and Munich Re, a reinsurer, have collaborated to launch a new product – Guarantee insurance solution for the solar panel manufacturing sector in Asia. Reportedly, NexPower has become the company’s first client in Asia.
This product is underwritten by Munich Re’s unit, MARP, and covers the warranties given by NexPower against the risk of performance deterioration in photovoltaic modules for a period of 25 years. The warranty guarantees that the modules will perform to at least 90% capacity in the first ten years and to at least 80% in the remaining 15 years, company reported.
Huichih Ko, chairman of Marsh Taiwan, said: “This solution offers solar module producers a greater degree of business certainty and allows operators of solar parks to finance photovoltaic installations more easily and with increased flexibility. This insurance policy is designed specifically to meet the needs of this critical renewable energy sector, and fills a much needed gap in the regional marketplace.”
Christian Scharrer, risk analyst at MARP, said: “Measures to counter climate change — in particular the specific expansion of new energy production technologies — open up major business opportunities for insurers, MARP has developed unique risk-transfer products especially for complex risks connected with renewable energies, including the performance guarantee cover for which we were able to win over NexPower as our first client in Asia.”
Semi Wang, CEO of NexPower, said: “I am particularly pleased that, in Munich Re, NexPower now has the backing of a renowned and strong partner to support our guarantee of thin-film modules with a product service life of 25 years.”
This suit was brought to Asia using Bowring Marsh, the international placement division of Marsh.