Insurers know better than anyone that climate change is the biggest threat to our current society. CO2 emissions must be reduced in a short period of time. This results in a proliferation of activities, in which (fire) safety sometimes falls short. Insurers therefore advocate the introduction of safe and uniform standards, which should preferably be enshrined in law.
In the Climate Agreement it has been agreed that the share of renewable electricity in total energy production must be seventy percent by 2030. In addition, the Member States of the European Union (EU) have decided that at least 32% of the energy generated in the EU (electricity, gas and heat) must come from sustainable sources. We must therefore use energy more sparingly and make increasing use of sustainable sources such as sun, wind and heat.
In 2020, 547,000 electric bicycles were sold in our country. That's half of all new bikes.
Developments are moving fast
In order to achieve the objectives of the Climate Agreement , the government is fully committed to the use of sustainable forms of energy. Homeowners, businesses and governments are encouraged to switch to sustainable energy through legislation, regulations and various incentives. The developments follow each other quickly. Think of batteries of electrical appliances, including bicycles and cars, and the (re)insulation of buildings. Or hydrogen in cars, storage on farmyards and in backyards. And on (neighborhood) batteries on the roof or in the neighborhood. These are all great sustainable developments, but they can also pose new risks. New and especially different (fire) safety issues are emerging.
To extinguish a fire in an electric car, about 10,000 liters of water are needed. In a normal fire engine goes 2,000 liters.
Insurability
Insurers are calling for more, safer and uniform standards to curb new (fire) risks as much as possible. Of course, this does not mean that the sector does not support the sustainability transition! On the contrary, the financial sector in general and insurers in particular have signed the commitment to the Climate Agreement from their role as large institutional investors. They see the need for sustainability, via climate and weather-related damages. In addition, insurers would like to keep risks insurable and prevent as much as possible that individuals or companies who need or want to insure themselves cannot (sufficiently) do so. The sector is therefore increasingly helping its customers to make the transition possible. Think of solar panels instead of asbestos, projects with green homes and pilots with hydrogen.
Sustainable safety is possible, but does it happen?
There are also concerns. New energy sources and carriers bring not only good news, but also less good news. The lithium batteries used in laptops, cars, bicycles and even in electric buses are so much more powerful than ordinary batteries that the (fire) risk can no longer be compared to the past. It makes quite a difference whether an electric or a 'normal' car catches fire in a parking garage. The fire course is more intense, the burning time longer and many toxic substances are released.
Moreover, new risks also entail new security risks and unfortunately these are still (partly) unknown. Even the probability and effect of a new risk cannot be properly mapped due to limited or missing data. That makes the assessment difficult for an insurer, but it does not mean that it cannot or even needs to be considered yet. Especially in times of transition, it is wise to focus on (fire) safety at an early stage. It goes without saying that insurers want to limit the risk and extent of the damage, especially when it comes to (fatal) victims, as much as possible.
On 1 June 2021, around 300,000 (partly) electric cars were driving around in the Netherlands. In December 2016, there were only 110,000.
Safe sustainability
Sustainability must be achieved, but preferably safely. Insurers therefore advocate taking the (fire) safety risks into account in the development phase and not thinking about this at a later stage. At the moment, the quantity of sustainability seems to outweigh the quality, while insurers believe that this should go hand in hand. One of the 'easiest' points for improvement that insurers propose concerns watching at an early stage. Now insurers often only come into the picture as a final piece, while a lot of profit can be achieved if they are called in earlier. After all, insurers are risk experts par excellence and have a lot of knowledge and expertise in-house about this. They would like to share this in the further developments surrounding the energy transition. Sometimes this already happens, as is the case with the development of the Scios scope 12, an inspection method for solar panel installations. Insurers were also involved in the research into developing a guideline for the use of submersible containers when extinguishing fires with electric vehicles. With this involvement, they want and can contribute to the search for preconditions and solutions that contribute to both the energy transition and safety.
The production of electricity from solar panels increased by more than half in 2020, from 5.3 billion kWh in 2019 to 8.1 billion kWh last year.
Insurers can't do it alone
However, insurers are not the only party that can and want to map out the risks. The fire brigade, (local) authorities, science and parties from the technology sector also make an inventory of risks and conduct research to limit them as much as possible. The insurance sector would like to call on interested parties to join forces and involve each other more in advance instead of afterwards.
In order to gain more insight into the risks and to pay attention to safety, it is also advisable to anticipate new risks at the earliest possible stage via the Building Decree and other legislation. Insurers therefore advocate (independent) quality marks and standards, while more information can also be provided about the safe use of developments and technology. Only if all parties have the same knowledge and can jointly think about next steps, risks and everyone's role in the whole, can the energy transition actually and safely succeed.
Working together for a sustainable society
Finally, if we zoom in on the speed of developments and the objectives in the Climate Agreement, only one conclusion is justified. We have to hurry. Insurers believe that this is an important task for the government, because it can create the stable and predictable conditions that we need with long-term policy. Now is the time to take measures to reduce and/or manage the risks. Insurers are happy to contribute to this.
Sources: CBS, RVO, NOS, RAI
Image: Marco van Leeuwen (Bananagun)
We have to be more sustainable, but we want to be safe!
Webpage 'Assured of a safe Energy Transition'
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