3 Takeaways from a Renewable Energy Study Sponsored by Argo Group - Argo Group

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3 Takeaways from a Renewable Energy Study Sponsored by Argo Group

Researchers at the University of Illinois Urbana-Champaign studied how insurers can cover renewable energy.

Renewable energy is one of the largest emerging sectors in insurance. But for insurers entering a market with limited loss data, it can be hard to know where to begin. 

With support and direction from Argo Group, researchers at the University of Illinois Urbana-Champaign investigated multiple forms of renewable energy. Here are three key findings from the study. 

1. Hydrogen and batteries offer the most promising opportunities

2. Subsidies can ease insurers’ entry into renewable markets

Many states provide funding for renewable energy, helping reduce the risk for insurers. California offers some of the most favorable opportunities, allocating funds for hydrogen and battery power and proposing a network of hydrogen fuel stations. 

The U.S. federal government also allocated $9.5 billion for clean hydrogen initiatives in the Bipartisan Infrastructure Law. 

3. Insurers can act now to help the renewable market grow

  • Gather more data. Loss data for new technology is sometimes sparse but insurers can help make it more robust. 
  • Speak to clients. Insurers can assess market needs and grow their relationships by engaging with renewable energy clients. 
  • Improve the model. As more information becomes available, insurers should refine the models to determine which markets are strongest. 

To learn more about promising opportunities in renewable energy insurance, view the full report. 

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