JLT Re, the reinsurance arm of global broker JLT, has entered into a new partnership with data repository and risk management provider for the solar industry, kWh Analytics.
The new partnership is JLT Re’s latest move in the the InsurTech space, and will see the development of a new risk transfer solution that insures solar energy output.
Via a collaborative effort, JLT Re and kWh will look to offer a solution that provides $100 million of protection.
The pair state that the relationship will bring greater liquidity to the expanding solar energy sector, which, currently, is estimated at $500 billion in size, with a further $500 billion expected to be completed over the next few years – which would result in a $1 trillion asset class.
An announcement on the new partnership states that kWh, via its database, lowers the total cost of financing by offering a Solar Revenue Put, which ultimately lowers the potential for loss for lenders, meaning lenders can reduce their debt service coverage ratios for asset owners.
Richard Matsui, Chief Executive Officer (CEO) of kWh Analytics, said; “kWh Analytics is extremely pleased to bring this unique product to the market and to tie the financial strength of the global insurance industry into the solar asset class. Kudos, our Solar Revenue Put, improves lender terms and reduces the cost of capital for asset owners by guaranteeing up to 95% of solar production with investment-grade balance sheets.
“JLT Re was instrumental in bringing this solution to market, helping kWh Analytics from the beginning of the process through to completion.”
Ed Hochberg, CEO of JLT Re (North America), said; “We are delighted to represent the foremost company in the solar field, especially in an industry that benefits our broader society.”
While 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.”