InnSure is a non-profit innovation hub that scales and accelerates insurance solutions to accelerate the energy transition. With support from NYSERDA, InnSure is excited to launch: $5 Million Insurance Innovation Award.
Background of the Insurance Innovation Award
Most of the technologies needed to achieve net-zero emissions by 2050 are still in the early stages of commercialization, making mass market adoption difficult to guarantee today. For example:
- Commercial Insurance: Lack of insurance creates a barrier to project financing for energy assets. Many carriers are still trying to figure out the right insurance model for first-generation assets such as wind and solar. Next-generation assets such as hydrogen and long-term storage have even fewer insurance options.
- Personal Line Insurance: Consumers generally lack meaningful incentives to adopt new energy technologies (e.g., installing heat pumps). At the same time, consumers continue to have limited options for guaranteeing the performance of technology products (e.g., electric car batteries).
At the same time, new energy technologies are receiving unprecedented funding from NYSERDA as well as CHIPS and the Science Act, the Bipartisan Infrastructure Act, and the Inflation Reduction Act.
The rapid expansion of government support for energy technologies presents a once-in-a-millennium opportunity for insurers and reinsurers to develop new products and policies.
Insurance Innovation Program
In 2022, NYSERDA decided to fund the Insurance Innovation Program to accelerate the insurance market for the energy transition. In 2023, the nonprofit organization InnSure was selected as the program manager. The program has two key components.
- first, Insurance Innovation AwardA non-diluted prize of $5 million, distributed among approximately five winners, to accelerate the development of new energy transition insurance products and policies.
- Second, creation Data SandboxA repository of climate, performance and billing data related to new energy technologies, designed to support R&D.
Innovation Award
The goal of this award is to create new insurance products and policies that fill a gap in the energy transition insurance market. InnSure will award up to $5 million in non-dilutive funding to approximately five winners on a competitive basis (or up to $1 million per company).
Data Sandbox
The goal of the sandbox is to provide insurance innovators with the climate, claims, and technology performance data they need to underwrite risk in new insurance products and policies. The data sources needed to develop new insurance products are typically fragmented, expensive, and difficult to obtain, creating a barrier for new market entrants. The sandbox attempts to fill this gap.
The sandbox is available to prize winners and other potential insurance innovators who participate in a series of hackathons. Access agreements are negotiated directly with the sandbox’s data contributors to develop mutually acceptable terms for all parties.
Insurance Innovation Award Proposal Case
Awards typically cover commercial and personal insurance and a variety of insurance objectives. Below is a representative list of hypothetical products or policies that awards may support.
- For example, it creates new models for first- and second-tier financing through risk diversification for green hydrogen production.
- Create product benefits through insurance, including revenue guarantees for rooftop solar power generation.
- Risk taking to expand the feasibility of project implementation, including covering the financial risks associated with geothermal drilling.
- Risk taking to accelerate user adoption by providing assurance for two-way charging.
Important information about the application process
Prospective applicants Letter of Intent (LOI) submission by May 27, 2024.
The last day to submit a full application is July 22, 2024.
Why should your company apply?
Suspicious companies can enjoy the following benefits:
- Each winner will receive between $500,000 and $1 million in funding (total prize pool $5 million)
- A selection of insurance acceleration services from a variety of solution providers.
- Dedicated business advisor.
- Events/summits with ecosystem partners.
Who can apply for the Insurance Innovation Award?
Applicants can be located anywhere in the world.
However, applicants must demonstrate a credible path to bring a new insurance product or policy to market in New York State within 18 months of the grant award date. Applicants must also demonstrate how they will address coverage gaps related to availability or affordability.
To be eligible for funding, products or policies must focus on one of New York’s key decarbonization areas. Clean energy, clean buildings, or zero-carbon transportation.
Your product or policy should also: Supporting Accelerated Climate Change Mitigation (i.e., supporting the deployment of technologies that reduce greenhouse gas emissions). Those who focus solely on adapting to climate change are not eligible for funding.
Hear from the team behind the Insurance Innovation Program.
InnSure Managing Director Charlie Sidoti says:
“We are excited to further InnSure’s mission to catalyze a bold insurance industry response to climate change with the support of NYSERDA.”
Comment from NYSERDA President and CEO Doreen M. Harris:
“Working with InnSure to shape the future of insurance for climate-friendly products will support new investments and provide the research and data needed to make more products a reality for New Yorkers to use every day. New York State is committed to fostering a strong approach to the innovation ecosystem, equipping companies with the right tools to help them reduce risk as they produce products using new technologies.”
Interested? Click here to submit your interest by May 27th!
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