In what was a hard-fought category, kWh Analytics wins the prize for sustainable insurance initiative of the year with its pioneering data-driven climate resilience work and in particular the Renewable Energy Adjusted Loss (REAL) model.
The model uses a vast database of over 300,000 assets and $80bn in losses in performing its function, setting what might be a new standard for climate risk modelling in insurance.
The effectiveness of the REAL model was tested in the 2024 Solar Risk Assessment report, concluding that standard industry modelling assumptions can underestimate solar project losses by 300+% when compared to kWh Analytics' modelling approach.
By integrating climate modelling and analytics into its underwriting processes, kWh Analytics has successfully navigated climate-related risks and identified projects with inherent natural catastrophe resilience.
The REAL model's accuracy allows kWh Analytics to precisely quantify the impact of resilience measures, enabling the company to offer tailored insurance pricing that directly rewards these investments. For example, a utility-scale solar project in hail-prone Texas achieved a 72% decrease in their property insurance rate by implementing strong hail resilience measures identified and valued through the REAL model.
At the same time, kWh has been working to bridge the insurance gap by entering with high-limit property capacity in 2023, after listening to renewable asset owners' needs.
Indeed, less than one year after launching its property insurance programme with capacity partner Aspen Insurance, kWh Analytics was able to significantly raise capacity from $75m total to $75m per location with the ability to cover 100% solar and BESS, 49% wind, and 49% construction.
Lastly, kWh Analytics has implemented a unique framework that directly rewards asset owners for investing in resilience measures, thereby incentivising sustainable practices. In so doing, they have created tangible financial incentives for sustainable practices.
For all of these reasons, the company wins the award for sustainable insurance initiative of the year.
