JLT Re partners to build solar energy output insurance product

Broker JLT Re has partnered with data repository and risk management provider kWh Analytics to create a risk transfer product insuring solar energy output.

San Francisco-based kWh reduces the overall cost of financing by providing a Solar Revenue Put that reduces the risk of loss for lenders, thereby enabling lenders to reduce debt service coverage ratios for asset owners.

JLT Re and kWh worked together to secure a preferential relationship with a global, investment grade insurance company to offer a product insuring $100 million of coverage. The relationship will bring liquidity to the growing solar energy industry, which is currently estimated at $500 billion with another $500 billion slated to be completed in the next few years – creating the next $1 trillion asset class.

“Kudos, our Solar Revenue Put, improves lender terms and reduces the cost of capital for asset owners by guaranteeing up to 95 percent of solar production with investment-grade balance sheets,” said Richard Matsui, CEO, kWh Analytics.

Gregg Holtmeier, JLT Re insurtech leader, added: “kWh Analytics is at the forefront of a wide-ranging trend we see in Insurtech, wherein data companies apply best-in-class data repositories to transform unquantified uncertainty into quantified risk that the insurance industry can then efficiently price.”

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