Hannover Re to reinsure German energy savings warranties

Hannover Rück S.E. has launched an energy-saving warranty insurance product for industrial enterprises in Germany.

The product allows providers of energy-efficient solutions to guarantee the potential energy savings offered by retrofitting activities, the reinsurer said Thursday in a statement. The service will provide deficiency payments from the contractor backstopped by the coverage.

Hannover Re is reinsuring the energy savings warranties covered by primary insurers, it said in the statement.

Target clients include firms that improve exterior insulation, install heating systems or optimize lighting equipment.

“With this innovative insurance product, we would like to create additional incentives to invest in energy-efficient measures and reduce energy consumption in Germany,” Hannover Re CEO Ulrich Wallin said in the statement.

The reinsurer already has a similar warranty insurance program in the United States.