Green Building – new insurance revenue

For the insurance business most of the media reports and predictions are dire, focused on the increasing losses, particularly the financial crisis and increasing claims many resulting from increasing number of natural disasters it said.

Finally big business has seen the light, and the new opportunities from the green, low carbon economy. The Lawyers Weekly (Canada) newsletter reports that insurers will introduce new Green insurance products, designed to help building owners manage risk.

Particularly interesting, some insurers will offer 10% saving on the cost of pollution legal liability insurance for LEED certified buildings.

Energy Performance Contracts
Also a long awaited insurance product suitable for EPC (Energy Performance Contract). The insurance is specifically designed to help building owners mitigate the risk in the event that a capital improvement project does not produce the anticipated energy savings. Here in Asia EPC’s are still in their infancy, and a product designed to help encourage building owners feel secure by lowering their downside exposure is welcomed.