Jack Yuan: Green Insurance Backing for Energy Storage's Expansion Lies a Trillion-Dollar New Market

Core Insights - Chinese energy storage companies are rapidly expanding overseas, with eight out of the top ten global energy storage system suppliers being Chinese, covering key markets such as Europe, Asia-Pacific, Latin America, North America, and the Middle East [1] Industry Overview - The energy storage sector is experiencing a surge in overseas orders, but it faces risks including technical hazards like lithium battery thermal runaway and the variability of overseas policies and regulations [2] - The energy storage industry's business model evolution is expected to create a new value-added service market, projected to grow from approximately USD 10.9 billion in 2025 to nearly USD 180 billion by 2035 [3] Company Strategy - Generali China Insurance, a wholly foreign-owned enterprise, aims to align its services with the overseas expansion of Chinese companies, focusing on Central and Eastern Europe and South America [4] - The company plans to increase its green insurance business to 30%-40% over the next five years, making it the largest segment of its operations [5][17] Market Dynamics - The traditional insurance sector is nearing saturation, while green insurance presents broader opportunities with relatively smaller starting gaps among industry participants [9] - Generali China Insurance targets the green "Belt and Road" as a niche sector, leveraging China's leading position in the new energy supply chain [10] Risk Management - The localization of overseas risk management is a core strength for Chinese companies, allowing Generali China Insurance to provide tailored risk management services while ensuring centralized premium recovery [11] - The energy storage market is classified into three segments: large-scale, industrial and commercial, and residential energy storage, with significant differences between domestic and international markets [19] Innovation in Insurance Models - The "Risk-as-a-Service" (RaaS) model is proposed to reshape insurance underwriting logic, addressing the long cycles and volatile revenue curves of energy storage projects [21] - The RaaS model aims to integrate owners, suppliers, and insurers into a community of interests, promoting continuous investment in safety and performance [23] Technological Focus - Generali China Insurance has established a "Green Insurance R&D Hub" focusing on energy storage due to its critical role in the power grid system and the complexities of its risk profile [13][18] - The company is developing an "Online Risk Assessment System for Electrochemical Energy Storage Power Stations" to enhance risk quantification and management in the industry [25][26]