“I usually joke that if there’s one thing in Brazil that’s cheap, it’s insurance.” This is the statement of Felipe Smith, executive director of Tokio Marine.
According to the executive, in the solar energy market, and in all sectors, the value costs around 1% of the insured asset. “If you look at the last few years, insurance has the most competitive price. Obviously it depends on the coverage you are going to take out, but on average it is less than 1%.”
“You have an investment value, in my opinion, very small. So, just do the math: if you don't pay that 1%, when will you recover that investment? It's 1% per year. If you do it in 10 years, it will cost you 10% in 10 years,” Smith explained.
For the expert, insurance is an investment, not an expense. “We don’t want to use it, do we? But it's important to have it, because unforeseen events happen, even with more items that you don't control. No matter how well you take care of your product, protect it well, you cannot protect yourself completely from nature, such as a fire, lightning, windstorm, hail, robbery”, he pointed out.
Insurance market
In an interview with Canal Solar, the CEO of Tokio Marine also commented on the main coverages used in the photovoltaic insurance market. “Since it is a new product, we do not have many statistics. But, certainly, damage from nature, in the country we live in, can happen frequently. gale and hail these are coverages that will likely be used a lot,” Smith said.
“For example, if there is a strong wind. Someone might say: ‘Wow, the panel is secured, my equipment is well-tied, it won’t fly away’. It really won’t fly away, I agree with you. But what if a branch falls on your photovoltaic system and destroys the entire equipment? That’s what windstorm coverage is,” he added.
Furthermore, the executive reported other coverages that are occasionally used more, such as fire protection, which can occur both during assembly and with the equipment already operating, and electrical damage, when lightning strikes your company or home.
