WTW targets CCS risks with lifecycle insurance cover

It combines energy, marine liability and environmental protection for carbon capture projects.

Willis Towers Watson has launched a new insurance solution designed to support carbon capture and storage (CCS) projects across their full lifecycle.

The product, introduced by its Willis business, provides integrated cover for risks linked to carbon capture, transport and storage. 

It combines elements of upstream energy, marine, liability and environmental insurance, tailored to the specific requirements of CCS operations.

The solution is intended to support developers, operators and investors by improving project bankability and aligning coverage with regulatory and carbon credit frameworks. 

It also includes advisory services such as risk engineering during the front-end engineering design phase, guidance on contractual risk allocation, and support for lenders and regulators.

Coverage spans construction through to long-term operations, including protection for physical assets and revenue streams such as business interruption and value chain disruption. 

It also addresses complex risks linked to early-stage technologies, third-party liabilities, and potential carbon dioxide leakage, including funding for remediation.

Additional features include protection tied to carbon credit and offtake agreements, helping to manage financial exposure from non-delivery penalties and compliance obligations.

Marie Reiter, head of global broking strategy for natural resources, said CCS projects face complex risks and evolving regulations, making effective insurance key to securing long-term investment.

Charlotte Watts, head of energy and mining in Asia, said the solution is designed to address cross-border risks in the region, where carbon capture is expected to play a growing role in decarbonisation. She added that the product is modular, allowing clients to select coverage based on their specific needs.