The New York State Energy Research & Development Authority (NYSERDA) and InnSure invite you to apply for the Insurance Innovation Prize.
Funding for the Insurance Innovation Prize comes from NYSERDA, a public benefit corporation established in 1975, which works to promote energy efficiency, renewable energy, and emissions reduction across New York’s economy. Since 2016, NYSERDA has invested over USD 600 million in programs to advance clean energy innovation. Through its Tech to Market portfolio, NYSERDA has supported the launch of over 700 energy technologies companies, which have raised USD 4.2 billion in subsequent financing.
Much in the way biotech disrupted pharma in the 1990s, renewables are disrupting oil and gas today. The insurance market for clean energy assets alone is expected to reach US$ 15 billion by 2030; there is also a ripe opportunity for creating new climate-focused products and policies in the USD 230 billion home insurance and USD 330 billion auto insurance sectors.
The Innovation Prize
The goal of the Prize is to create new insurance products and policies that fill gaps in the energy transition insurance market. InnSure will competitively disburse up to USD 5 million in non-dilutive funding to approximately five winners (or up to USD 1 million per company).
InnSure is also available to provide technical advice and support to prospective applicants, and they strongly recommend that applicants reach out in advance of the application deadline.
The Data Sandbox
The goal of the Sandbox is to provide insurance innovators with the climate, claims, and technology performance data they need to underwrite risk in new insurance products and policies. The data sources necessary to develop new insurance products are typically disaggregated, expensive, and difficult to obtain, creating an obstacle for new market entrants. The Sandbox attempts to fill that gap.
The Sandbox will be available to Prize winners and other prospective insurance innovators who participate in a series of hackathons. Access agreements will be negotiated directly with the data contributors to the Sandbox to develop mutually acceptable terms for all parties.
InnSure will competitively award insurance innovators for the research and development of new insurance policies and products:
- USD 500,000 to USD 1 million in funding each for approximately five winners.
- Curated insurance accelerator services from various solution providers.
- Dedicated business advisor.
- Events/summits with ecosystem partners.
This program is supported through NYSERDA’s Novel Business Model and Offering initiative. It promotes new business models, commercial service or product offerings, and tools that enable the scaling of climate solutions through customer acquisition or increased capital flows.
What Types of Solutions Are Being Considered?
To be eligible for funding, products or policies should focus on accelerating climate change mitigation (i.e., supporting the deployment of technologies that reduce greenhouse gas emissions). Products or policies exclusively focused on adapting to life with climate change are not eligible for funding. Some examples of products and policies the innovation prize supports include, among others, the following:
- Creating new models for first- and nth-of-a-kind financing, for example, pooling risk for green hydrogen production.
- Creating product benefits via insurance like guaranteeing revenue for rooftop solar.
- Off-taking risks to unlock project delivery such as covering the financial risk of geothermal drilling.
- Off-taking risk to accelerate user adoption by providing a warranty for bidirectional charging.
Who can apply?
Applicants may be located anywhere in the world.
However, applicants must demonstrate a credible path to bringing a new insurance product or policy to market in New York State within 18 months of the grant date.
Applicants will also need to demonstrate how they are solving an insurance gap with respect to availability or affordability.
Build the Insurance Products of the Future to Support New York’s Decarbonization Goals
This program supports the adoption of new technologies to meet New York State’s nation-leading Climate Leadership and Community Protection Act goals, including an 85 percent reduction in greenhouse gas emissions by 2050.
“Removing barriers to innovative climate technologies that lower carbon emissions is a critical part of reaching New York’s ambitious climate goals,” New York State Governor Kathy Hochul said. “By supporting new insurance policies for New Yorkers purchasing cutting-edge, climate-friendly products, we can offer protection and reassurance for consumers and companies alike to help ensure our state continues to lead in climate innovation.”
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