Etiqa General Insurance Bhd chief executive officer Fukhairudin Mohd Yusof
KUALA LUMPUR: Etiqa has launched the first insurance plan in Malaysia to protect against shortfalls in solar panel energy output, Solar Energy Shortfall Insurance (SESI).
In a statement, the insurer said the plan will compensate insured solar farm operators for financial losses arising from any shortfall in solar energy production due to the reduction in solar irradiation, or reception of light energy from the sun. The plan is underwritten by Etiqa General Insurance Bhd.
Etiqa said SESI has been designed to provide ease of mind for solar farm
operators by providing coverage for any shortfall in revenue and profit which was projected based on future solar panel energy production.
The measurement standards are based on both input (solar irradiation) and output (energy generated production) because the shortfall of energy production is significantly correlated to the reduction in solar irradiation.
In principal, the intention is to cover the actual financial losses resulting from production shortfall due to solar irradiation reduction.
“Etiqa is proud to be the first insurance company in the country to introduce SESI, which is a breakthrough insurance solution that is aligned with the Government’s efforts to increase the country’s renewable energy mix from 25% in 2022 to 31% by 2025.
“With the SESI in place, investors and financial institutions are able to invest and financially support solar energy businesses more confidently,” Etiqa General Insurance chief executive officer Fukhairudin Mohd Yusof said.
Etiqa has recently become the first insurance and takaful company in Malaysia to become a signatory of the United Nations’ Principle for Sustainable Insurance (UN PSI) under the United Nations Environment Programme Finance Initiative (UNEP FI).
“The launch of SESI proves our commitment to these principles, as well as Etiqa’s ambition of being a regional industry leader in ESG that aligns business with key issues pertinent in sustainability which are related to climate, environment, community & financial resilience,” Fukhairudin said.
