Insurance Innovation For The Energy Transition

To achieve net-zero emissions by 2050, the U.S. must rapidly accelerate the commercialization of energy transition technologies. The (re)insurance industry has both an obvious and necessary role to play in managing risk as technologies advance in their commercialization journey. Broadly, energy transition technologies fall into two categories: those that are still “proving” their capacity through demonstration projects (e.g. green hydrogen), and those that are deployed, but have yet to achieve their full market potential (e.g. solar and wind). Today, technologies in both categories are faced with a limited range of insurance options, slowing mass market adoption.

Read More in the Market Insights Report.

Much in the way biotech disrupted pharma in the 1990s, renewables are disrupting oil and gas today. As technologies mature with the support of federal policy and spending, it is critical for energy transition companies and the (re)insurance industry to closely collaborate on developing insurance products and policies. Those that move first are likely to capture market share in growing industries. The insurance market for clean energy assets alone is expected to reach $15B by 2030. There is also a ripe opportunity for the creation of new energy transition-focused products and policies in the $233B home insurance and $260B auto insurance industries.

Read more in the Market Insights Report.

InnSure will disburse up to $5M in non-dilutive grant funding to at least five teams developing products or policies to fill insurance gaps in the energy transition, or up to $1M per company. Companies are expected to bring an insurance product or policy to market in New York State within 18 months of the grant date, the standard product development lifecycle in the insurance industry. Funding will be disbursed in tranches in response to achievement of agreed-upon milestones. To help companies progress toward milestones, InnSure will offer a comprehensive suite of acceleration services, covering activities like raising risk capital and obtaining regulatory approvals.

Read more about the Program & Timeline.

While entities can either be for- or non-profit, we are looking to deploy our catalytic funds into commercial solutions that eventually have a path to financial self-sufficiency. Applicants may be located anywhere in the world subject to New York State and Federal Government trade restrictions, though teams should be aware that they will likely need to travel to New York as part of the process of receiving approval for their product or policy. ​Applicants can be any stage, from seed stage startup through publicly-traded companies.

See Eligible Uses For Award Funds

Given the relatively fast turnaround on launching a product, we expect the strongest applicants will have both insurance and energy expertise on their team. We expect that many applicants are likely to be traditional insurers or incorporate as Managing General Agents (MGAs), the legal vehicle through which much innovation happens in the insurance industry. (See industry infographic here.)

Having said that, we are eager to hear from prospective applicants who may not check all of our boxes today but would like to be “paired” with teammates who have complementary expertise. To that end, we strongly recommend prospective applicants submit a letter of intent here and/or reach out to InnSure with specific questions.

All solutions must directly benefit New York State energy ratepayers and demonstrate a path to launching in-market within 18 months from the grant date. Products or policies must focus on accelerating climate change mitigation (i.e., supporting the deployment of technologies that reduce greenhouse gas emissions); those exclusively focused on adapting to life with climate change are not eligible for funding.

We are most interested in solutions that tackle both New York—and the nation’s—most emissive sectors: buildings, transportation, and the electric grid, or platform-level solutions that cross emissive industries. To understand New York’s energy transition market, applicants may want to consult the Market Insights Report, where we have documented a range of sub-sectors in which there are known insurance needs. Applicants will also be asked to demonstrate a large national addressable market—at least $100M national TAM in 2025 and/or a projected $1B national TAM by 2040—as we are looking to fund solutions capable of scaling.

Funding for the prize comes from the New York State Energy Research & Development Authority (NYSERDA), a public benefit corporation established in 1975, which works to promote energy efficiency, renewable energy, and emissions reduction across New York’s economy. Since 2016, NYSERDA has distributed over $600 million in non-dilutive funding to programs that advance clean energy innovation. Many of the innovations NYSERDA supports ultimately benefit residents across the country. Through its Innovation Portfolio, NYSERDA has supported the launch of over 700 energy technologies companies, which have raised $4.2 billion in subsequent financing.  

Those interested in applying may submit a Letter of Intent (LOI) by May 27. Note that the LOI submission is non-binding; those who submit an LOI are not required to submit a full application, and Prize applicants who did not submit an LOI will not be penalized. You may benefit from submitting an LOI as InnSure may be able to match you with service providers or potential partner applicants based on your responses. Joint applications are encouraged.

To learn more about the support and programming offered to Prize participants, see Program & Timeline.

InnSure is always excited to talk to prospective applicants. Please reach out with any questions or to schedule time to speak with a member of the team.

Participation in the network and program provides opportunities for strategic partners from the insurance and energy transition sectors as well as insurance solution providers to benefit from engaging with insurance innovators in various ways.

Learn more about different ways to participate here.

There are many ways to engage - we are seeking Prize judges, Business Advisors, Program Committee members, and promotion partners, among others. You can indicate your interest in participating by completing this form.

InnSure is always excited to talk to prospective partners. Please reach out with any questions or to schedule time to speak with a member of the team.