Munich Re: renewable energy premium volumes set for 240% growth

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Author: Jonathan Swift
In line with political targets, the share of renewable energies in power generation in Germany is expected to increase from a current 10% to 60% by the middle of the century.
This will create opportunities for the German insurance industry, according to Munich Re which anticipates that premium volume for renewable energy insurance will significantly grow by 2020.

In 2009, premium income from the insurance of renewable energy facilities totalled approximately €186m in Germany.

For 2020, Munich Re expects premium volume to reach around €440m, equivalent to growth of nearly 240%. At the same time, business potential should rise from €19m to around €50m owing to the construction of new facilities.

Munich Re added renewable energies are therefore a growth area in a generally stagnating German insurance sector, with wind power, photovoltaics and biomass playing a central role.

Ludger Arnoldussen, member of Munich Re’s board of management continued: “We are excellently equipped to support the structural transformation of the energy supply sector by offering customised 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.”