New York Governor Kathy Hochul announced that the nonprofit InnSure will administer the state’s $6.5 million insurance innovation fund that includes grants to encourage the development of new insurance policies and products that support new clean technologies.
The initiative, announced last September, aims to remove obstacles and provide funding for products that manage the financial risk associated with climate change, supporting the state’s goal of reducing carbon emissions 85% by 2050. It falls under the Insurance Innovation for Climate-Technology Solutions program.
“Removing barriers to innovative, climate technologies that lower carbon emissions is a critical part of reaching New York’s ambitious climate goals,” Governor Hochul said. “By supporting new insurance policies for New Yorkers purchasing cutting-edge, climate-friendly products, we can offer protection and reassurance for consumers and companies alike to help ensure our state continues to lead in climate innovation.”
Cambridge, Massachusetts-based InnSure runs a “climate risk and insurance sandbox” where insurance, technology, climate, data and other providers collaborate in working groups and laboratories on innovative ways that insurance can contribute to the battle against climate change.
InnSure will work with the New York State Energy Research and Development Authority (NYSERDA) to competitively award insurance innovators for the research and development of new insurance policies and products.
New York Launches $6.5M Fund for ‘Clean Tech’ Insurance Products; Seeks Program Manager
As the program administrator, InnSure will receive up to $1.5 million to work with managing general underwriters and managing general agents that can research, develop, and test new insurance products, and it will award up to $5 million in competitive grants in 2023.
One of projects InnSure is working on with another group, Climate Interactive, aims to bring a climate simulator game developed by MIT Sloan to the insurance industry. The nonprofits hope this program, which will include workshops and role-playing games, will interest more insurers in becoming invested in the climate change battle.
“Climate-related solutions will drive insurance industry innovation and growth over the coming decades,” InnSure said in announcing the simulator project last December. It estimates that growth in climate-related insurance products and services will present more than $100 billion in new business opportunities per year by 2030.
NYSERDA CEO Doreen M. Harris said InnSure will provide the research and data needed to support new investments and bring more products to fruition for New Yorkers to use on a daily basis.
NYSERDA plans to deploy $800 million over 10 years as direct investments via grants and commercialization support. More than $680 million in private investments and $200 million in project finance capital have been created, and more than 450 clean energy products have been commercialized as a result. These include LED lighting systems, home appliances, longer-lasting batteries, and more efficient heating-and-cooling systems.
Funding for this initiative is through the state’s 10-year, $6 billion Clean Energy Fund.
New York City Launches Parametric Flood Program With Insurance, Tech Firms
New York City has also waded into the insurance innovation waters. Insurer Swiss Re Corporate Solutions, reinsurance broker Guy Carpenter, and the data technology firm ICEYE have teamed up with the city government agencies to develop a pilot parametric flood recovery assistance program for low and moderate income households in the city. The pilot will provide up to $1.1 million in emergency funding to households in need after a major flooding event.
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