Insurers eye profits in greentech

While insurers are no strangers to the cleantech/greentech, two companies have announced initiatives specifically targeting vendors and projects in the industry.

AIG Global Marine and Energy, a division of American International Group (NYSE: AIG), today announced the formation of a specific alternative energy practice.

The group is to service the insurance, risk management and loss control needs of U.S.-based alternative energy clients, including organizations engaged in biofuel, hydroelectric, geothermal, solar and wind operations.

Rick Gibbons, Executive Vice President of AIG Global Marine and Energy is leading the practice. David Reisinger, Assistant Vice President, AIG Global Marine and Energy, will manage the commercial alternative energy portfolio globally.

Gibbons and Reisinger told the Cleantech Group that, despite today's formal announcement of the firm's new alternative energy practice, AIG has a long history of underwriting unique risks in the alternative energy sector.

"Any time you have a new technology, it's going to be protypical, it's going to be untested. It may have design problems, it may have performance. We've been working for years with alternative energy companies to help them manage their risks in these areas," Gibbons said.

Gibbons said AIG plans to consult with its customers in developing new risk management products for the alternative energy industry.

"We want to get some dialogue going with the developers or owner/operators of coal gasification, liquefaction, ethanol, solar or wind and hear about what their needs are. Too often people come up with an insurance product when there's not a specific need for one."

That said, AIG has got a few ideas for new things to sell. One hypothetical product, for instance, could help companies specifically protect forthcoming revenue from their carbon credits.

"To generate credits, you'd have to be operating. You wouldn't be able to take advantage of the full value of your credits, selling them to recognize revenue, if you weren't operating," said Gibbons. "We can insure against physical damage, characterizing this as an additional form of lost revenue, for example."

AIG is a leading international insurance organization, and serves commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer, it claims.

AIG isn't the only one now specifically targeting renewable energy.

Yesterday, the New York-based Navigators Group (NASDAQ: NAVG) announced the expansion of its range of insurance coverage for the energy industry to include offshore wind turbine products.

Navigators said it was making the move "in response to the commitment made by many governments to develop sources of renewable energy and growing international investment in the construction and operation of wind turbine generators in coastal waters."

The company already has expertise in the insurance of construction and operational risks associated with land-based wind turbines around the world.

Products offered for the Offshore Wind Turbine segment will include project cargo, contractor’s all risks, delay in start up, operational material damage, business interruption and third party liability. Coverage will be underwritten by either Navigators or Lloyd’s.

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