GoRisk EcoSolutions – A New MGA for Renewables, New Energy Tech, and Transition Investments
Energy has always been a critical piece of our economy, and my personal journey into this field started with the energy crises of the 1970s. My first post accounting degree job at Marsh allowed me to work closely with insurance for oil giants like Exxon and Mobil, shaping my understanding of the intricate balance between energy supply and risk. Today, that same balance has shifted dramatically toward renewable and alternative energy sources, and GoRisk is poised to lead with the launch of GoRisk EcoSolutions, an MGA specializing in insuring the evolving landscape of renewables, new energy technologies, and transitional energy assets.
With an MBA in international finance, my thesis in the '80s revolved around energy supply and demand. Even then, I saw how emerging technologies moderate energy price spikes and sustainably meet global demands. Fast-forward to today, and the global energy market has evolved, making way for renewables and lower-emission alternatives. However, this rapid transformation also exposes the industry to unique risks that traditional insurance models aren’t responding to.
The Energy Shift and Political Winds of Election 2024
The sweeping political shifts following the 2024 U.S. election will have far-reaching impacts on energy policy. Lower taxes, fair trade policies, and tighter border control will fuel economic growth, while a renewed focus on domestic energy production signals a resurgence of “drill-baby-drill” policies, which support fracking, natural gas, and nuclear energy.
A cautionary signal and potential headwind is Trump’s potential repeal of the 2022 Biden administration climate law, promising tax credits and loans. Still, many projects have already commenced, and many are exclusively funded in the private sector. Further, low carbon energy projects such as capturing emissions at industrial plans are widely favored by industry and the government.
Despite this return to traditional energy policies, renewable energy remains crucial. According to ExxonMobil's August 2024 report, Our View to 2050, electricity demand is projected to surge by 80% by 2050. Renewable sources—particularly wind and solar—are expected to quadruple, with coal making way for natural gas and other lower-emission sources. A core challenge for clean energy is the fledging domestic supply chains, which need to be developed.
By 2050, ExxonMobil predicts that renewables will account for 15% of the energy mix, up from today’s 6%, with bioenergy and other green technologies continuing their steady climb. Insurance premiums in the sector will surge like a wildcat well!
The Insurance Gap for Renewable and Transitioning Assets
The explosive growth in renewable energy and energy transition investments has created a substantial demand for specialized insurance solutions that traditional markets are slow to adapt and develop. Insuring renewable assets involves a unique set of challenges and risks, such as high upfront development costs, environmental and social impact, technology uncertainties, and operational risks linked to novel energy sources like solar, wind, and biofuels. Beyond that, new technologies such as carbon capture, biofuel systems, and next-generation batteries all need tailored insurance products that can cover their unique exposures.
This is where GoRisk EcoSolutions steps in. By focusing on renewables, new energy tech, and the broader energy transition space, GoRisk is positioning to bridge the gap with products such as performance warranties and tax covers that address the specific risks and requirements of these assets. The insurance market potential is immense—insurance solutions for renewable energy and transition technologies are needed to protect the estimated billions in clean energy investment.
GoRisk EcoSolutions: Leading the Charge with Specialized Coverage
GoRisk EcoSolutions is committed to developing a robust array of products, from property and casualty insurance to bespoke coverage options that address niche risks in renewable and energy transition investments. Our goal is to create a dynamic and resilient insurance program that keeps pace with the rapid innovation within the renewable sector. Through strategic partnerships with industry participants and capital providers and an innovative approach of AI for product development, we aim to offer the insurance solutions necessary for this sector to flourish.
The journey to a sustainable energy future may have its share of road bumps, but GoRisk EcoSolutions is preparing to meet these challenges head-on, providing the specialty insurance solutions that energy investors, developers, and operators need to manage risks and thrive in a fast-evolving marketplace.
Translation- there is an incredible opportunity for GoRisk’s new EcoSolutions MGA specializing in renewables, energy technology and transition assets and investments.
Stay tuned as we roll out specialized products designed for the modern energy landscape, making GoRisk EcoSolutions a key partner in the energy transition.
November 2024