Marsh launches first-of-its-kind insurance solution
Marsh launches first-of-its-kind insurance solution | Insurance Business America
Risk Management News
Marsh launches first-of-its-kind insurance solution
New offering sets itself apart from traditional insurance provisions
Risk Management News
By
Noel Sales Barcelona
The global insurance broker and risk advisor Marsh – a subsidiary of Marsh McLennan – has launched a first-of-its-kind new insurance solution addressing the insurance limitations that have previously slowed the development of the carbon capture and storage (CCS) industry.
Available to projects globally, the solution is designed for the transportation and storage of carbon dioxide (CO2). Created by Marsh’s Energy & Power team and underwritten by Canopius, it offers comprehensive coverage to enable operators to meet their financial security obligations when captured CO2 is being transported and injected into suitable geological structures.
Unlike traditional coverage solutions, Marsh’s offering adds a new non-damage trigger for the geological leakage of CO2, providing an indemnification for the costs of corrective measures, as well as a trigger for the associated business interruption.
It also includes an indemnification for the costs incurred to acquire carbon credits for the mass of CO2 leaked, where applicable to the project’s geography. This is available across the removal chain. Commenting on the move, Hannah Jennings, global carbon capture and storage initiative leader, energy and power at Marsh Specialty, noted the role carbon capture and storage has to play in delivering the net zero energy system.
She added: “Marsh Specialty’s new solution not only represents a meaningful shift in the parameters of traditional energy insurance but also delivers greater certainty and confidence to investors, governments, and regulators.”
Sam Harrison, group chief underwriting officer at Canopius, added: “It’s our job to find solutions to address the as yet unknown risks associated with these new, exciting technologies. But that doesn’t mean we’re working in the dark – we have decades of experience in finding solutions for traditional upstream energy resource risks, and we can put that experience to work in these new fields.
“Working with our partners and their clients, we can take learned lessons and find new, innovative ways of addressing tomorrow’s challenges.”
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