Green products in the insurance market

Abstract

The decarbonization of economy and, more specifically, the widespread deployment of systems that produce energy from renewable sources require substantial insurance cover, as such a transition process contains the seeds of new individual and systemic risks. The new regulations in Europe, aimed at creating incentives for transition to green economy, with the changes in consumer preferences, support the demand for insurance products tied to the sector of renewable energy, energy efficiency and sustainable mobility. They are seeking at building up an appropriate institutional environment to push the demand for green insurance products. Faced with this challenge, the purpose of this article is to present green insurance products, review the legislative foundations and summarize the weaknesses that have emerged in the creation and management of such innovative products.