HSB - SEAF

HSB Engineering Ltd!

Image: shutterstock!

Technical Expertise!

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Leading provider of specialist engineering insurance, reinsurance and inspection services in the UK, Europe & internationally!

HSB Group - leading worldwide provider of equipment breakdown insurance and inspection services since 1866!

Part of Munich Re - global leader in insurance, reinsurance and consistent risk management!

Technical expertise and experience in a range of engineering and construction risks!

Rated A++ Superior by A.M. Best Company !

About HSB Engineering Insurance Ltd !

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Drivers!§  Political pressure!§  Energy Act 2011 (18%

of UK commercial buildings)!

§  Commercial sense (reduced costs, improved asset)!

Development of unique risk and credit enhancement model!

Issues!§  Low deal flow despite

no shortage of funding!§  Disconnect between

ESCOs and lenders!§  Conservative savings

guarantees!§  Bank nervousness

around technical risk!

Potential !§  Remove technical

uncertainty by insuring shortfall in savings achieved!

§  Enhance savings guarantees through risk transfer!

§  Ease of access to loans by creating credit risk enhancement!

An Emerging Risk!

Establish a risk assessment framework to deliver energy efficiency insurance (EEI) to SEAF contractors!!This will enable SEAF contractors to enhance investor confidence by transferring the projects technical risk! !

Image: used under license from shutterstock.com!

Our Objective!

Image: used under license from shutterstock.com!

Asset performance insurance!

Covers shortfall in savings achieved by an energy efficiency project!

Unique loss triggers!

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3!Cover available for up to 5 years!4!

Our Innovative Solution!

Energy Consumer!

ESCOs (Energy Service Companies)!

Lenders/Banks!!

§  Energy savings projects more likely to be realised!§  Reduced energy costs!§  Performance is insurance backed!!

§  Assets and their performance are covered!§  Able to offer enhanced savings guarantees!§  Easier access to finance!§  Cheaper finance!

§  Technical risk is removed!§  Insurance created credit risk enhancement!§  Projects become more investible!!

Target Group! Benefits!

Delivering Tangible Solutions!

Thank you!!