AXA XL, a global insurance and reinsurance company part of the AXA Group, published the report Future Energy Finance: How Captives Can Drive Renewable Energy Growth, The report considers how the transition to low-carbon energy systems will increase demand for adaptive risk financing approaches and highlights captive insurance arrangements as a key mechanism to support innovation and investment across the industry.
The report was produced by Captive Intelligence in partnership with AXA XL and brokerage group Aon and is available through Captive Intelligence.
It notes that captives can help organizations manage the uncertainties associated with early-stage renewable energy technologies, which may have limited historical performance data, while also providing more consistent access to risk capital and stronger oversight of risk management practices over longer investment horizons.
The report also identifies their role in enabling structured risk sharing in complex project arrangements, helping to coordinate insurance and financial planning, and in expanding available market capacity through enabling technologies as they move from pilot programs to wider commercial deployment.
Vicky Roberts-Mills, global head of energy transition at AXA
Marine Charbonnier, Head of Captives and Casual Underwriting for Asia Pacific and Europe at AXA
Guido Benz, head of commercial risk at Aon Global Renewables, added: “Captives can act as a bridge to help new technologies move from prototype stage to mainstream insurable assets and effectively help initiate market adoption.”