InnSure is a nonprofit innovation hub amplifying and accelerating insurance coverage options that can expedite the power transition. With NYSERDA’s help, InnSure is worked up 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 right this moment, which slows down mass market adoption. For instance:
- Industrial Line Insurance coverage: An absence of insurance coverage creates a barrier to mission financing for power belongings. Many carriers are nonetheless making an attempt to determine acceptable protection fashions for first-generation belongings, like wind and photo voltaic. Subsequent-generation belongings, like hydrogen and long-duration storage, have even fewer insurance coverage choices.
- Private Line Insurance coverage: Shoppers usually lack a significant reward incentive for adopting new power expertise (e.g. putting in a warmth pump). Concurrently, customers proceed to have restricted protection choices for expertise product efficiency (e.g. electrical car batteries).
On the identical time, new power applied sciences are receiving unprecedented ranges of monetary help, not solely from NYSERDA, but additionally by way of the mixed funds of the CHIPS and Science Act, the Bipartisan Infrastructure Regulation, and the Inflation Discount Act.
The speedy enlargement of presidency help for power expertise 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 by way of 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 recent power transition insurance coverage merchandise and insurance policies.
- Second, the creation of a Knowledge Sandbox, a repository of local weather, efficiency, and claims information associated to new power expertise, designed to help 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 Knowledge Sandbox
The aim of the Sandbox is to supply insurance coverage innovators with the local weather, claims, and expertise efficiency information they should underwrite threat in new insurance coverage merchandise and insurance policies. The info sources essential to develop new insurance coverage merchandise are usually 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 will probably be accessible to Prize winners and different potential insurance coverage innovators, who take part in a sequence of hackathons. Entry agreements will probably be negotiated immediately 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 usually span business and private line insurance coverage and a variety of insurance coverage goals. Beneath is a consultant record of hypothetical merchandise or insurance policies the prize may help:
- Creating new fashions for first- and nth-of-a-kind financing, for instance, pooling threat for inexperienced hydrogen manufacturing.
- Creating product advantages by way of insurance coverage like guaranteeing income for rooftop photo voltaic.
- Off-taking threat to unlock mission supply akin to protecting the monetary threat of geothermal drilling.
- Off-taking threat to speed up consumer adoption by offering a guaranty for bidirectional charging.
Essential Details about the Software 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 corporations 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 varied resolution suppliers.
- Devoted enterprise advisor.
- Occasions/summits with ecosystem companions.
Who Can Apply for The Insurance coverage Innovation Prize?
Candidates could also be positioned wherever on the earth.
Nevertheless, candidates should show 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 may also have to show 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 give attention to certainly one of New York’s decarbonization focus areas: clear power, clear buildings, or zero-emission transportation.
Merchandise or insurance policies should additionally help the acceleration of local weather change mitigation (i.e., supporting the deployment of applied sciences that scale back greenhouse gasoline emissions). These solely centered on adapting to life with local weather change usually are not eligible for funding.
Hear from the Group 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 help 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 information wanted to help new investments and convey extra merchandise to fruition for New Yorkers to make use of every day. New York State is dedicated to rising a robust method to our innovation ecosystem with the best instruments in place to assist corporations scale back the chance of manufacturing items by way of new applied sciences.”
? Click on right here to submit your letter of intent by Might twenty seventh!
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