MoU Signing Ceremony on ASEAN Renewable Energy Pool

On December 8, 2023, the ASEAN Reinsurance Working Committee (ARWC) signed a Memorandum of Understanding (MOU) to pledge support through underwriting capacity and establish the terms for the ASEAN Renewable Energy Pool (AREP). This initiative is under the supervision of the ASEAN Insurance Council (AIC) and was formalized during the 26th ASEAN Insurance Regulators’ Meeting & 49th ASEAN Insurance Council Meeting in Ha Long, Vietnam.

The concept of AREP was initially proposed by Malaysian Re, Chair of the ARWC for the 2021-2022 term, during the 4th ARWC meeting on 15 October 2021. The proposal aimed to create a facility or pool to support ASEAN governments’ renewable energy policies.

The MOU signifies a joint commitment from the participating ARWC Members under the supervision of AIC, to collaborate, and lead ASEAN (re)insurance industry to support ASEAN countries’ effort to achieve net zero emission target and deal effectively with climate change.

AREP commenced operations on 1 July 2024 and is now available as a capacity market for renewable energy facultative reinsurance across the ASEAN region, offering a capacity of USD 40 million to support operational onshore solar and wind projects to address the evolving needs of the market. Presently there are 7 participating members for this collaboration which includes Malaysian Re (as Pool Manager), PT Reasuransi Indonesia Utama (Persero) (Indonesia Re), Vietnam National Reinsurance Corporation (VINARE), Cambodian Reinsurance Company (Cambodia Re), National Reinsurance Corporation of the Philippines (Nat Re), Hannover Re, Malaysia and Chubb Asia Pacific Pte. Ltd. who serves as the Lead Underwriter for this initiative, with Guy Carpenter acting as the broker. This collaboration marks a significant advancement in insurance coverage and support for renewable energy businesses and projects across ASEAN.

Chubb’s extensive experience in the ASEAN region, combined with their valuable technical knowledge transfer within the underwriting committee of AREP, enhances the diversity of the Technical Underwriting Committee. Each ASEAN member contributes insights from their respective markets, enriching the platform with varied perspectives.

By integrating these perspectives, the platform ensures that the pooled expertise and insights drive informed and balanced underwriting decisions. This collective effort establishes robust and cohesive support specifically tailored for managing renewable energy risks across the ASEAN region. Through the exchange of best practices and underwriting expertise, the pool aims to enhance regional underwriting capabilities, enabling all members to benefit from shared learning and development opportunities.