Expanded Environmental Consulting Services
Sompo Risk Management & Health Care provides customized consultant services to improve the sustainability of the corporate value while mitigating the risk of environmental issues.
Environmental consulting menus
Insurance for Stable Electricity Supply Costs: Support for Market Liberalization
In the event of serious damage or problems caused by disasters at an electricity generation facility, a power producer’s viability can be threatened by higher costs required to procure power from other operators if the producer is unable to generate enough of its own electricity to meet demand. The full liberalization of retail electricity markets has also expanded management risks for power producers.
In this context, on August 9, 2016, Sompo Japan Nipponkoa started selling insurance to power producers and electricity retailers to cover the costs for a stable supply of electricity by compensating for procurement costs in the event of excess or insufficient power demand and for costs caused by electricity imbalance.
In collaboration with Sompo Canopius in the UK Lloyd’s insurance market, which has abundant undertakings of this product in Europe where electricity market liberalization is well under way, Sompo Japan Nipponkoa will facilitate the stability of electricity businesses and promote market liberalization by improving and providing insurance products to match future market trends and power producers’ needs.