Elon Musk’s idea for super-fast transport, Hyperloop Transportation Technologies (HTT), a tube-based transportation system that propels capsules through a tube at high speed using magnetic levitation, has been deemed feasible and insurable by reinsurer Munich Re.
HTT has been hailed has the next transportation breakthrough, powered by a combination of alternative energy and energy conservation systems, it produces as much or more energy than it uses and promises to transform congested traffic systems and poor inner city air quality.
Munich Re was tasked with carrying out a risk report of HTT’s project and offered its stamp of approval; forming a strategic partnership with the firm after deeming the project viable, a milestone success for the innovative transportation concept.
The German reinsurance giant set up an HTT project team to provide fundamental support for the corporate development of HTT and the commercial viability of Hyperloop technology, after the carrier released the first HTT Risk Report with a comprehensive view of the risks and challenges facing HTT.
The partnership will continue to develop an insurance concept and HTT enterprise risk management system.
Torsten Jeworrek, member of the Munich Re Board of Management, said of the forward-looking cooperation; “The technology developed by HTT is set to fundamentally change the way we travel in future. Such technological shifts give rise to new insurance needs that demand innovative solutions – which our Hyperloop team is happy to develop.”
Thanks to a unique crowd-collaboration model, HTT is working with over 800 experts from around the world on the development and realisation of Hyperloop technology.
The pods will travel approximately 600 km, roughly the distance between Los Angeles and San Francisco or Munich and Berlin, in just 30 minutes.
“As we approach the commercialization of our technology, the creation of a new regulative framework is the biggest challenge. Being able to offer an insurable system is a huge milestone for this groundbreaking technology. With Munich Re we are able to discuss our specific enterprise and technological risks openly,” said Dirk Ahlborn, Chief Executive Officer (CEO) and co-founder of HTT.
“We look forward to continuing to work together and are delighted to have found an innovative partner in Munich Re that takes a constructive and cooperative approach to our very specific needs, thus making a valuable contribution to the successful economic development of our company,” he added.