Munich Reinsurance is one of the leading reinsurers of the world and the company is based in Munich, Germany. Before discussing further about what this company does, let us first get a gist of what reinsurance is all about.
What is reinsurance?
Reinsurance is a form of insurance which is purchased by an insurance company. In this form of insurance, the insurance company buying a reinsurance policy would be allowed to remain solvent even after they have faced major claims for several events including but not limited to disasters and calamities.
While the key aim of reinsurance is risk management, it can also be used for tax mitigation propose too. The company which purchases the reinsurance policy would have to pay a premium to the insurer who would pay a share of the claims as per chosen terms of agreement.
The insurer company might either specialize exclusively in reinsurance policies or could be a general insurance company as well.
What does Munich reinsurance offer?
Munich Reinsurance has their clients spread worldwide. They offer reinsurance polices and at the same time also offer advice on different forms of insurance business as well.
The ERGO group is their primary insurance unit and they write all possible types of life and health insurance. They deal in different kind of property and casualty insurance as well.
The Warranty Risk of Solar
Project developers, banks, governments and regulators, should correctly address the “Warranty Risk of Solar”, when designing their contracts, tenders or regulatory framework.
The long warranty period of PV modules (25-30 years!) poses a unique risk to the PV industry. The warranty risk of solar has two perspectives.
Firstly, the PV module supplier may suffer warranty claims, which exceed their warranty reserves. Secondly, PV project owners may be left alone with useless warranties of an insolvent module supplier.
To lower the warranty risk of solar means to increase bankability and sustainability for the whole PV industry.
Munich Re PV Warranty Insurance to mitigate the Warranty Risk of Solar
Therefore, Munich Re has established a new insurance standard, which extends the pure protection of the module supplier to the protection of the project owner.
Insured PV module suppliers must regularly pass the Munich Re due diligence process, and insure a capacity of at least 100 MWp per year. They are entitled to register PV project owners to become Beneficiaries of the PV warranty insurance, and provide an individualized Buyer’s Declaration Letter from Munich Re as proof of insurance. The PV warranty insurance has dedicated insurance capacity for each registered PV project owner. This remains in place also in the event that the PV manufacturer is unable to honor their warranty obligations.
The Munich Re PV Warranty Insurance standard has been received very positively by the whole PV industry. More and more PV module suppliers are becoming so-called Warranty Partners.
This is supported by a large network of insurance brokers, primary insurance companies and quality assurance providers in most countries with a relevant PV market. Processes are automated and digitalized to handle the large amount of data from the insured PV projects.
The PV Warranty Partner List
A list of all PV module suppliers, who are currently enrolled in the Warranty Partner program is available online.
Thus, potential PV module buyers can easily find suppliers, who are entitled to sell PV modules with an insured warranty.
In addition to the benefit of an insured warranty in the future, PV module buyers can be certain, that the listed suppliers must regularly pass the Munich Re due diligence process and have an established track-record regarding insurance losses.