Munich Re said that it anticipates that premium volume for renewable energy insurance segment to reach around €440m, equivalent to growth of nearly 240%. In 2009, premium income from the insurance of renewable energy facilities totaled approximately €186m in Germany.
At the same time, business potential is expected to rise from €19m to around €50m owing to the construction of new facilities. Renewable energies are therefore a growth area in a generally stagnating German insurance sector, with wind power, photovoltaics and biomass playing a central role.
Munich Re said the energy sector growth is in line with political targets and the share of renewable energies in power generation expected to increase from a current 10% to 60% by the middle of the century.
According to Munich Re, at the end of 2009, there were nearly 340,000 people working in the renewables sector in Germany, a figure that has more than doubled within a period of six years. The industry’s turnover totaled €36bn in Germany for 2009, compared with €18bn for 2005.
Munich Re board of management member Ludger Arnoldussen said, Munich Re is excellently equipped to support the structural transformation of the energy supply sector by offering customized risk transfer products.
“Our spectrum ranges from traditional coverage for industrial facilities to complex solutions, such as performance guarantee covers enabling capital providers to reduce their investment risks. Over the next few years we will continue to expand this product range,” Arnoldussen said.