Munich RE offers insurance for battery performance warranties

Main building of Munich RE headquarters in Munich

The Munich RE insurance group has developed an insurance product for battery manufacturers to cover the risk of batteries not complying with the performance specifications. However, the coverage is only valid for ten years and is initially aimed at large storage systems for grid stabilisation or peak load balancing. In a second step, »the product will be introduced onto the mobility market, for example to insure performance of batteries in electric vehicles.«. The company did not provide any information about a possible insurance policy for small stationary systems, such as private solar energy storage systems.
The insurance is taken out if, for example, repair or replacement costs for battery modules exceed a predetermined amount. In addition to battery manufacturers, »selected investment projects« can also be insured directly; this is important if the battery manufacturer has to file for insolvency during the lifetime of a project. According to Munich RE, the first customer of the new insurance is the US manufacturer of redox flow batteries, ESS Inc.

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