Who is MUNICH Re?
Founded in Germany in 1880, the Munich Reinsurance Group is currently the world's largest risk management entity, primarily engaged in reinsurance, basic insurance, healthcare, and asset management. In 2010, premium income totaled 45.5 billion euros; assets of 190.2 billion euros. Munich Re's shares are listed on all German stock exchanges and on the Xetra electronic trading system.
The stability of Munich Reinsurance?
After the catastrophic disaster in San Francisco in 1906, Munich Reinsurance was the only insurance company in San Francisco that still had solvency.
This type of insurance is irrevocable: even if VSUN no longer has solvency or risk (it certainly seeks to minimize risk), Munich Re is also obligated to resolve claims in case of the poor performance of VSUN modules.
Why does VSUN partner with MunichRe?
The international photovoltaics industry currently has enormous opportunities, yet also faces challenges, so investors and finance lenders attach great value to investment security. Corporate Insurance Partner offers manufacturers and investors innovative risk management solutions on a global basis to deliver greater planning security for the entire industry.
VSUN provides customers with better and safer protection and longer-term, effective insurance. VSUN has become one of the leading companies in the power and photovoltaic industry since its inception, compared to other solar module manufacturers with limited assets. Munich Re's reinsurance of this guarantee is a strong proof of VSUN's strength, product quality, and balance sheet. Munich Re is known for its strict reinsurance requirements and VSUN wishes to ensure certain contractual liabilities arising out of the long-term performance and product warranties provided to its eligible customers under the Limited Warranty for PV Modules.
What is power loss reinsurance?
The attenuation of the photovoltaic module output power over time is well known. VSUN guarantees that the power loss will not exceed 20% of the original rated power within 25 years. Munich Reinsurance cooperates with VSUN to undertake these guarantees in order to reduce the potential risks of investors and customers.
How does the claim work?
Reinsurance gives more reliable help and support to the relationship between the customer and VSUN. The customers can rest assured that VSUN and Munich Re’s Photovoltaik Buyer’s Policy will cover all claims in the case that modules do not perform as guaranteed. The solar reinsurance business of Munich Re ensures the following:
1) If a module does not perform as guaranteed, the claim will be sent to your sales representative as usual.
2) If, after reviewing the claim, a module has failed to perform according to its specifications, VSUN will offer financial compensation.
3) If VSUN fails to deliver on its promise, the Munich Re-monocrystalline module will use monocrystalline silicon cells for maximum solar efficiency. The polycrystalline module uses a simpler raw material manufacturing process to achieve the same performance/cost level cost optimization as a monocrystal cell to further reduce the cost per watt. Munich Re will provide a guarantee from the customer's invoice date.
4) In case of Insolvency – the Insured and the entity which is responsible have been granted legal protection through their being found to be bankrupt; or admit in writing in a judicial, regulatory or administrative proceeding (i) to being insolvent, (ii) unable to pay its debts, (iii) or its inability generally to pay its debts as they become due.
5) Indemnification – MunichRe shall compensate the Beneficiary for its Loss which shall be calculated as follows:
a) with regard to the product warranty and
b) with regard to the performance warranty,
80% of the lesser repair costs, or the costs the Beneficiary actually incurs to replace or repair the defective Photovoltaic Modules; or the Actual Cash Value of such defective Photovoltaic Modules.