Munich Re Insures LED Products that Have DEKRA LED Performance Approval
Munich Re’s Green Tech Solutions has developed specialized insurance solutions for the LED market, in which LED manufacturers as well as project developers can cover the financial risks resulting from guarantee conditions or technical problems. Munich Re and DEKRA expect that the willingness to invest in LED projects will increase as a result of this. Their collaboration goes further than just the insurance, with both companies exchanging knowledge about the quality of LED lighting and collaborating in developing new services for the LED market.
The latest generation of LEDs can drastically reduce the energy consumption and CO2 emissions caused by lamps, thereby making a significant contribution to the goal of cutting energy consumption up to 50% by 2030. LED lamps have other benefits too, for example in the field of lighting in public places: they promote public safety, give places a friendlier and warmer appearance at night and reduce the amount of light pollution.
The main obstacles to the large-scale introduction and acceptance of LED installations are the technological and technical risks, the lack of confidence in small and medium-sized manufacturers and the uncertainty about quality, lifespan and guarantees, as well as the high level of investment required. Munich Re and DEKRA aim to remove these barriers and to stimulate the LED market by offering quality guarantees and covering risks.
Modern, well-designed LED lamps have a lifespan that is much longer than that of traditional lamps, so they can be used for a very long time before having to be replaced. They also have a number of other attractive benefits. As the LED lamp market grows and the number of manufacturers increases, the demand for quality guarantees grows as well. Unfortunately there are still products whose light output and colour stability do not fulfil the promises made by their manufacturers.
“DEKRA LED Performance Approval is intended to support the manufacturers of high-quality LED lamps. It covers lifespan, light quality, energy consumption, safety and tolerance of environmental factors and weather conditions”, explains Bert Zoetbrood, CEO DEKRA Certification Group and head of the business unit Product Testing & Certification. “Products are tested extensively and their production is monitored, but the far-reaching market surveillance programme is probably even more important.”
Munich Re has developed an innovative insurance solution which complements DEKRA LED Performance Approval. This covers performance risks associated with LEDs like lumen output and colour consistency. “Now that the LED market is growing so fast, we see an increasing need for tailor-made risk-transfer solutions. Our clients confirm that performance warranty covers can have a number of positive effects in this rapidly consolidating market: from securing a broader investment base for a manufacturer, to decreased financing costs, to a more flexible allocation of capital and balance sheet protection – just to name a few”, says Michael Schrempp, Head of Green Tech Solutions at Munich Re.
