New York’s Putting Some Green— $5 Million— Into Green Energy Insurance Innovations

New York State’s $5 million Insurance Innovation Prize is now open for applications.

Supported by the New York State Energy Research and Development Authority (NYSERDA), the new program offers awards for the “development and deployment of novel insurance solutions that promote and increase the adoption of energy transition technologies.” At least five winners will be chosen.

“This program was created to support increases in research and development activities that expand affordability and accessibility of energy-related technologies and narrow the gap between science, engineering, and underwriting approaches,” said Charlie Sidoti, executive director of Innsure, the innovation hub that is administering the prize competition.

The state wants to address the concern that many technologies required to achieve net-zero emissions by 2050 are still in the early phases of commercialization and are therefore difficult to insure.

The insurance market for clean energy assets alone is expected to reach $15 billion by 2030, according to the sponsors, who contend that there is also an opportunity for the creation of new energy transition products and policies in the home insurance and auto insurance sectors.

Prize applicants can be for profit or non-profit entities, but the solutions they propose must demonstrate a path toward financial self-sufficiency. Applicants may be located anywhere in the world; however, they will need to show they can bring an insurance product or policy to market in New York within 18 months of the grant start date.

As the program administrator, Cambridge, Mass.-based InnSure will work with underwriters and agents who can research, develop, and test the new insurance products and select the winners.

Once prize winners are announced, InnSure will support them in transitioning to in-market insurance solutions over a period of up to 18 months. Support services include activities such as raising risk capital and guidance for regulatory approvals in New York State; access to business, technology, and insurance consultants; and in-person summits that will serve as opportunities to network.

Non-binding letters of intent should be submitted by May 27. The application period will close on July 22. Full requirements for the application and details on award allocation can be found on the webpage.

The innovation program is one of several New York State initiatives created to tackle climate change.

This week Governor Kathy Hochul launched a voluntary climate action pilot program for hospitals. The program provides premium credits of up to $1 million to New York State Insurance Fund-insured hospitals that pledge to achieve net zero greenhouse gas emissions by 2050 and enhance their resilience to extreme weather events, helping mitigate the climate-related hazards that contribute to steep increases in workplace injuries and illnesses.

Topics New York InsurTech