Egypt: Insurance federation reviews insurers' coverage of risks of green hydrogen projects
Source: Middle East Insurance Review | Dec 2023
The Insurance Federation of Egypt (IFE) is reviewing insurance companies’ coverage of the risks of green hydrogen projects. The IFE said in its bulletin that the coverage of the construction phases of these projects includes all construction risks, delay in starting operation (DSU), third-party liability, sabotage and terrorism and maritime shipping.
Insurance companies’ coverage in the operational phase of these projects includes property damage, traditional business interruption and emissions-related; third-party liability; maritime transportation; sabotage and terrorism; technology failure or property damage due to cyber attacks.
The IFE said that there is additional coverage for the construction and operation phases of these projects, including liability for environmental damage and professional errors, according to Amwal Alghad.
The federation has been taking steps to deal with climate change risks. For instance, it established a specialised committee for sustainable insurance and another for agricultural insurance. It also signed a cooperation protocol with the Sustainability Centre of the Financial Regulatory Authority, in addition to holding many workshops, conferences and seminars to discuss the issue of climate change, natural disasters and achieving sustainable insurance.
The IFE highlights green hydrogen to support the transition to clean energy and reduce carbon emissions. The bulletin mentions the difference between securing green hydrogen production and securing current renewable energy production for insurance companies. It also discusses the steps taken by the state to boost green hydrogen business and to become one of the world’s largest exporters of green hydrogen. M