Insurance
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In any economic climate, but especially within this past year, banking institutions want protection guarantees on their investments as part of a debt financing package. To address this concern, we approached Europe's largest insurance provider, Great Lakes Munich Re Group, to back up our warranty through an insurance policy that protects our customers and their bankers over the 25 year panel warranty term. After putting this insurance with Munich Re in place in early 2009, one of the final remaining issues we had been facing to consistently obtain financing from banks was resolved.
Insurance benefits:
- The Munich Re insurance policy protects bank investments against losses due to panel performance through a risk transfer policy carried by Munich Re
- The policy strengthens customer's project financing package by removing performance risk factor and doubt of warranty support
- The policy allows customers to select the latest technology most appropriate for their requirements without the underlying concerns of financing new technology.
Excerpts from Photon International, Insuring Amorphous Assurances, September 2009
- The immediate purpose of the "risk-transfer" policy is to provide coverage in the unfortunate event of potentially crippling losses related to panel performance guarantee claims beyond the statutory warranty period - which in most of Europe and the US is 24 months.
- But the policy goes beyond that. "It is more like a business enabler than a typical insurance solution".
- Munich Re's backing should give potential customers one less reason to fear module supply contracts with Signet.
- In addition to protecting themselves against potential heavy losses, the other main aim of the new policyholders is to parlay Munich Re's backing into improved "bankability" for PV power plant projects .
- For Signet, this strategy appears to be working. The same day the company announced its new insurance policy. it also revealed its first major supply agreement - 7.7MW of shipments to Italian company Moncada Energy Group.
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