As part of this new initiative, Zurich serves as the lead insurer while Aon acts as the exclusive broker. This initiative aims to support the development of clean hydrogen projects and is part of Zurich’s broader commitment to the net-zero transition through customer engagement, new services, and product innovation.
Insurance plays a critical role in facilitating the net-zero transition by offering protection and risk expertise. Clean hydrogen, seen as a promising alternative to fossil fuels, is expected to play a key role in the energy transition.
Sierra Signorelli, CEO of commercial insurance at Zurich, highlighted this new initiative with Aon, noting the potential of clean hydrogen in reducing carbon emissions.
“Over the past two years, Zurich and Aon have conducted extensive research and engaged with customers to gain insights about the specific needs and challenges of developing blue and green hydrogen projects. Blue hydrogen is derived from natural gas and uses carbon capture technologies to reduce its carbon intensity; while green hydrogen is produced by splitting water into hydrogen and oxygen via electrolysis powered by renewable energy,” Signorelli said.
Joseph Peiser, global CEO of commercial risk at Aon, also noted the difficulties developers and their capital providers face in de-risking and securing adequate insurance for global hydrogen projects.
“This new solution caters to their unique needs, providing comprehensive coverage addressing the complex risks associated with hydrogen projects across the entire project life cycle,” Peiser said.
The clean energy insurance facility provides a multi-line, integrated policy that includes construction, delay in start-up, operational cover, business interruption, marine cargo limits, and third-party liability. It also covers carbon capture, utilization, and storage (CCUS) technologies, offering a complete suite of solutions for the hydrogen production value chain.
The facility has seen strong interest from participating insurers, exceeding expectations. This indicates a market appetite for sustainable solutions and the insurance industry’s readiness to cover new risks.
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