InnSure is a nonprofit innovation hub amplifying and accelerating insurance coverage options that can expedite the power transition. With NYSERDA’s assist, InnSure is happy to launch the USD 5 million Insurance coverage Innovation Prize.
Background for the Insurance coverage Innovation Prize
Many of the applied sciences required to attain net-zero emissions by 2050 are nonetheless within the early phases of commercialization and are due to this fact troublesome to insure at present, which slows down mass market adoption. For instance:
- Industrial Line Insurance coverage: A scarcity of insurance coverage creates a barrier to undertaking financing for power property. Many carriers are nonetheless making an attempt to determine applicable protection fashions for first-generation property, like wind and photo voltaic. Subsequent-generation property, like hydrogen and long-duration storage, have even fewer insurance coverage choices.
- Private Line Insurance coverage: Customers sometimes lack a significant reward incentive for adopting new power know-how (e.g. putting in a warmth pump). Concurrently, shoppers proceed to have restricted protection choices for know-how product efficiency (e.g. electrical car batteries).
On the similar time, new power applied sciences are receiving unprecedented ranges of monetary assist, not solely from NYSERDA, but in addition via the mixed funds of the CHIPS and Science Act, the Bipartisan Infrastructure Legislation, and the Inflation Discount Act.
The fast growth of presidency assist for power know-how creates a once-in-a-generation alternative for insurance coverage carriers and reinsurers to develop novel merchandise and insurance policies.
The Insurance coverage Innovation Program
In 2022 NYSERDA determined to assist catalyze the insurance coverage marketplace for the power transition via funding the Insurance coverage Innovation Program. In 2023, InnSure, a non-profit, was chosen as this system administrator. This system has two key parts:
- First, the Insurance coverage Innovation Prize, a USD 5 million non-dilutive prize, unfold throughout roughly 5 winners, to catalyze the event of latest power transition insurance coverage merchandise and insurance policies.
- Second, the creation of a Information Sandbox, a repository of local weather, efficiency, and claims knowledge associated to new power know-how, designed to assist R&D.
The Innovation Prize
The aim of this prize is to create new insurance coverage merchandise and insurance policies that fill gaps within the power transition insurance coverage market. InnSure will competitively disburse as much as USD 5 million in non-dilutive funding to roughly 5 winners (or as much as USD 1 million per firm).
The Information Sandbox
The aim of the Sandbox is to supply insurance coverage innovators with the local weather, claims, and know-how efficiency knowledge they should underwrite danger in new insurance coverage merchandise and insurance policies. The information sources essential to develop new insurance coverage merchandise are sometimes disaggregated, costly, and troublesome to acquire, creating an impediment for brand new market entrants. The Sandbox makes an attempt to fill that hole.
The Sandbox might be out there to Prize winners and different potential insurance coverage innovators, who take part in a sequence of hackathons. Entry agreements might be negotiated instantly with the info contributors to the Sandbox to develop mutually acceptable phrases for all events.
Examples of Proposals for The Insurance coverage Innovation Prize
Prize winners sometimes span business and private line insurance coverage and a spread of insurance coverage goals. Beneath is a consultant record of hypothetical merchandise or insurance policies the prize may assist:
- Creating new fashions for first- and nth-of-a-kind financing, for instance, pooling danger for inexperienced hydrogen manufacturing.
- Creating product advantages by way of insurance coverage like guaranteeing income for rooftop photo voltaic.
- Off-taking danger to unlock undertaking supply comparable to overlaying the monetary danger of geothermal drilling.
- Off-taking danger to speed up consumer adoption by offering a guaranty for bidirectional charging.
Necessary Details about the Utility Course of
Potential candidates ought to submit a Letter of Intent (LOI) by 27 Might 2024.
The final day to submit your full software is 22 July 2024.
Why Ought to Your Firm Apply?
Successful firms will profit from the next:
- USD 500,000 to USD 1 million in funding for every winner (from a pot of USD 5 million).
- Curated insurance coverage accelerator providers from numerous resolution suppliers.
- Devoted enterprise advisor.
- Occasions/summits with ecosystem companions.
Who Can Apply for The Insurance coverage Innovation Prize?
Candidates could also be situated anyplace on this planet.
Nonetheless, candidates should reveal a reputable path to bringing a brand new insurance coverage product or coverage to market in New York State inside 18 months of the grant date. Candidates will even must reveal how they’re fixing an insurance coverage hole with respect to availability or affordability.
To be eligible for funding, merchandise or insurance policies ought to deal with certainly one of New York’s decarbonization focus areas: clear power, clear buildings, or zero-emission transportation.
Merchandise or insurance policies should additionally assist the acceleration of local weather change mitigation (i.e., supporting the deployment of applied sciences that scale back greenhouse gasoline emissions). These completely targeted on adapting to life with local weather change aren’t eligible for funding.
Hear from the Staff Behind the Insurance coverage Innovation Program
From InnSure Government Director Charlie Sidoti:
“We’re excited to additional InnSure’s mission of catalyzing a daring insurance coverage business response to local weather change with the assist of NYSERDA.”
From NYSERDA President and CEO Doreen M. Harris:
“Working to form the way forward for insurance coverage for climate-friendly merchandise with InnSure will present the analysis and knowledge wanted to assist new investments and produce extra merchandise to fruition for New Yorkers to make use of every day. New York State is dedicated to rising a powerful strategy to our innovation ecosystem with the correct instruments in place to assist firms scale back the chance of manufacturing items via new applied sciences.”
? Click on right here to submit your letter of intent by Might twenty seventh!
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