The Innovation Prize

To achieve net-zero emissions by 2050, the U.S. must rapidly accelerate the commercialization of energy transition technologies. The (re)insurance industry has both an obvious, and necessary, role to play in managing risk as technologies advance in their commercialization journey. Broadly, energy transition technologies fall into two categories: those that are still “proving” their capacity through demonstration projects (e.g. long duration energy storage), and those that are deployed, but have yet to achieve their full market potential (e.g. solar and wind). Today, technologies in both categories are faced with a limited range of insurance options, slowing mass market adoption.

Much in the way biotech disrupted pharma in the 1990s, renewables are disrupting oil and gas today. As technologies mature with the support of federal policy and spending, it is critical for energy transition companies and the (re)insurance industry to closely collaborate on developing insurance products and policies. Those that move first are likely to capture market share in growing industries. The insurance market for clean energy assets alone is expected to reach $15 billion by 2030. There is also a ripe opportunity for creation of new energy transition-focused products and policies in the $233 billion home insurance and $260 billion auto insurance industries.