New Energy Risk, Westfield Syndicate Launch New Lloyd’s Lineslip
New Energy Risk (NER) and Westfield Syndicate have launched a new Lloyd’s lineslip, increasing capacity for technology performance insurance in the energy transition sector.
This initiative aims to support innovative technologies in areas such as fuel cells, hydrogen, and carbon capture. With the passage of the Inflation Reduction Act in the U.S. and similar support in the U.K. and Europe, the energy transition is at a critical juncture.
Since 2013, NER has enabled over $4 billion in capital deployments, with nearly $1 billion in the past year alone. Partnering with Lloyd’s, NER seeks to continue supporting the development of new technologies essential for climate and sustainability goals.
The additional capacity will help meet the growing demand for insurance in the renewable energy sector, with Guy Carpenter serving as the sole placing broker. This collaboration aims to address the insurance demand-supply gap in the energy transition space.
- New Lloyd’s lineslip increases capacity for technology performance insurance.
- NER has enabled over $4 billion in capital deployments since 2013, with $1 billion in the past year.
- The initiative supports technologies in fuel cells, hydrogen, carbon capture, and low-carbon fuels.
- Partnership with Lloyd's strengthens NER's platform to accelerate energy transition innovation.
- None.
Insights
The launch of a new Lloyd’s lineslip by New Energy Risk (NER) and Westfield Syndicate marks a significant step in the provision of insurance products geared towards the energy transition. The involvement of Lloyd's, a prestigious and well-regarded insurance market, underscores the confidence in NER's capability to underwrite complex risks associated with new and renewable energy technologies. This development is particularly noteworthy given the current global emphasis on sustainability and the reduction of carbon footprints.
The scale of NER's operations is impressive, having enabled over
For investors, this development suggests that NER is well-positioned to capture a growing market opportunity in the energy transition space. However, it's important to remain vigilant about the inherent risks associated with underwriting new and unproven technologies. The successful management of these risks will be key to NER's long-term profitability and sustainability.
The collaboration between NER and Westfield Syndicate to launch a Lloyd's lineslip focused on energy transition technologies highlights a strategic alignment with global sustainability goals. This move is timely, given the recent policy developments such as the Inflation Reduction Act in the U.S., which are driving significant investment in clean energy. The insurance industry's role in mitigating the financial risks of new technologies is pivotal in attracting the necessary capital to scale these innovations.
From a market research perspective, the demand for insurance products in the energy transition sector is outstripping supply. This imbalance presents a substantial opportunity for NER to expand its market share. The lineslip’s focus on areas such as fuel cells, hydrogen, low-carbon fuels and carbon capture indicates that NER is targeting high-growth segments within the renewable energy sector.
Additionally, the backing of Lloyd's capacity enhances NER's credibility and ability to service large-scale projects. Investors should note that while the potential for growth is significant, the market's competitive landscape and the technological and regulatory uncertainties specific to the clean energy space should be considered.
With the additional capacity available under the lineslip, NER continues to expand its platform to accelerate innovation in the energy transition space. NER’s insurance solutions enable its clients to advance the breakthrough technologies required to meet the world’s climate and sustainability targets.
“With the passage of the Inflation Reduction Act in the
“Insurance has a vital role to play in creating the environment in which new lower carbon technologies can reach scale and commercial viability and we are very supportive of thoughtful and disciplined underwriting that supports the goals of the global energy transition,” said Rachel Turk, Chief Underwriting Officer, Lloyd’s. “We are delighted to see the allocation of risk capital to businesses focusing on the transition to renewable energy and with the recent launch of the TCX transition risk code, this will enable the market to further lean into the opportunities that transitioning to a lower carbon economy brings.”
The capacity will be available, alongside NER’s existing capacity arrangements, to service demand arising in areas such as fuel cells, hydrogen, low-carbon fuels, carbon capture and
“Obtaining Lloyd’s capacity is an important milestone for New Energy Risk and this new lineslip will enable them to provide insurance solutions to clients, which encourages additional capital to develop new and renewable clean energy technologies. The insurance demand in the energy transition space is outstripping supply and the Lloyd’s market is an efficient way for NER to service this demand. Guy Carpenter is committed to helping clients source capacity for innovative and emerging risks,” said Henry Sanderson, Head of Innovation & Emerging Risks, Global Specialties, Guy Carpenter.
Jeremy Shallow, Deputy Active Underwriter, Westfield Specialty Syndicate 1200 added, “New Energy Risk is bridging the gap between insurance and the deployment of breakthrough technologies in renewable energy, and at Westfield Specialty we are delighted to be able to support this. Tom and his team have a sophisticated approach to the challenges presented by new technologies, and we are excited by the prospects of being a part of the transition journey alongside New Energy Risk.”
About New Energy Risk
New Energy Risk is a leading provider of innovative technical risk transfer solutions to the sustainable industry worldwide and pioneered the development of large-scale technology performance insurance. It was founded in 2010 to provide complex risk assessment and serve as an effective bridge between clean-energy innovators and insurers enabling the commercialization of novel technologies and businesses driving the energy transition. Since then, New Energy Risk has helped its customers gain over
About Paragon
Paragon Insurance Holdings, LLC, a Galway Holdings company formed in 2014, writes all commercial lines of insurance across more than 25 programs. Paragon’s industry-specific and general underwriting facilities offer insureds, retail agents, carriers, reinsurers and service providers unique product, service, capability, and results. Learn more: https://paragoninsgroup.com/
About Guy Carpenter
Guy Carpenter & Company, LLC is a leading global risk and reinsurance specialist with 3,400 professionals in over 60 offices around the world. Guy Carpenter delivers a powerful combination of broking expertise, trusted strategic advisory services and industry-leading analytics to help clients adapt to emerging opportunities and achieve profitable growth. Guy Carpenter is a business of Marsh McLennan (NYSE: MMC), the world's leading professional services firm in the areas of risk, strategy and people. The Company's more than 85,000 colleagues advise clients in 130 countries. With annual revenue of over
View source version on businesswire.com: https://www.businesswire.com/news/home/20240626120730/en/
Media Contact
Kara Lester for New Energy Risk
kara@gregoryfca.com
Source: New Energy Risk
FAQ
What is the new Lloyd’s lineslip launched by New Energy Risk and Westfield Syndicate?
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