MunichRE and Marsh join forces on insuring geothermal exploration risk
German Re-insurance major MunichRE, insurance broker Marsh GmbH and German project developer Exorka, have jointly developed an insurance concept covering the exploration risk of a geothermal energy project in Taufkirchen, near Munich, Germany.
In a release today, it is reported that German Re-insurance major MunichRE, insurance broker Marsh GmbH and German project developer Exorka, have jointly developed an insurance concept covering the exploration risk of a geothermal energy project in Taufkirchen, near Munich.
MunichRE has in the past insured projects via a government Exploration Risk Insurance Scheme.
“Substantial drilling and development costs associated with deep geothermal heat exploitation are often a huge investment barrier because there is a high risk of not making a find. While there have been efforts through private insurance products, many are seen as too expensive and international offers have been limited to geographic areas, eg developing countries in the World Bank’s GeoFund.
At the Taufkirchen project, Munich Re will be assuming the significant risk of thermal heat drilling, with a policy negotiated in collaboration with Marsh.
Siegmund Fahrig, head of Marsh GmbH, said: “A further milestone has been achieved in that we have been able to involve Munich Re in this project, based on our special concept – recognised in the field of deep geothermal energy – for the critical exploration risk”, “This underscores Marsh’s market leadership as a consultant dealing with exceptional renewable energy risks.”
Munich Re Board member Thomas Blunck said: “With our expertise, we can also assume renewable energy risks that are not everyday occurrences and thus help provide greater investment security.” Munich Re’s renewable-energy commitment fits in seamlessly with the focus of the company, which has declared climate change a strategic topic.”
Source: Industrial Fuels and Power