Video / Recorded Webinar
Using Parametric Insurance to Reduce Climate Risks of Renewable Energy Resources Presentation
Parametric insurance reduces financial risks to large, utility-scale hydro, wind, and solar power investments from extreme weather or climate events. It pays policyholders fixed amounts when insufficient or excessive resource flows reach predefined thresholds, based on readily available meteorological data. This coverage reduces the risk of cash flow problems from potential revenue losses and contract penalties and can make it easier to obtain financing and manage utility-scale variable renewable energy (VRE) operations.
During this third event in a series of joint Climatelinks-CEADIR webinars, the lead author of a report on parametric insurance opportunities in Central America—produced under the USAID-funded Climate Economic Analysis for Development, Investment, and Resilience (CEADIR) Activity—presented alongside panelists from two leading international reinsurance companies, MunichRe and SwissRe. The panel discussed major findings, the evolution of parametric insurance within a changing climate, and experiences with parametric insurance for utility-scale VRE throughout the world.