Aon Benfield said it has brokered insurance underwritten by AIG that will facilitate the U.K. government’s push to install smart energy meter systems around the country by 2020. Specifically, it will cover extended warranty protection for the project that runs far longer than the industry norm.
The placement is on behalf of EDMI, a global company that designs, develops and makes high-tech energy meters and metering systems for utilities, according to its web site.
David Stroud, executive director for EDMI Europe, said in a statement that the insurance cover will enable the company to start making and distributing the devices.
EMDI’s unusual policy gives it 15-year extended warranty protection through AIG cover, for approximately 10 million communications hubs expected to be installed in homes and small businesses in Scotland and northern England as part of the meter system project. After they’re up and running, the hubs will allow the smart meter system to transmit energy usage real time data to energy companies, Aon Benfield noted in its announcement.
According to Aon Benfield, the U.K. government wants the extended warranty protection, which is beyond a typical 5-year extended warranty cover typically offered by insurers for this kind of project.
Long-term, the government wants all homes and small businesses in the U.K. to be using smart meters by 2020. Insurance becomes crucial, because the project means utilities have to replace more than 53 million gas and electricity meters. Looked at a different way, the project entails visits to 30 million homes and small businesses, Aon Benfield said.
Once complete, the smart meters are designed to help residents and businesses enjoy major energy savings.
Aon Benfield is the global reinsurance intermediary and capital advisor for Aon plc.
Source: Aon Benfield