The cooperative agreement is signed at the ceremony. — Photo courtesy of PVI

PVI Insurance Corporation has signed an extensive cooperative agreement on providing insurance coverage for power plants belonging to the Vietnam Oil and Gas Group (Petrovietnam) and its associated entity, the PetroVietnam Power Generation Branch (PVPGB).

In light of the global commitments articulated at COP 26 concerning the reduction of emissions from waste, the international insurance market pertaining to coal-fired power plants has encountered a series of challenges in recent times. Notably, the capacity of the market to secure reinsurance has experienced a sharp decline. With a significant number of reinsurers exiting the market, only a handful of well-established entities have persevered in this realm. Consequently, projects associated with coal power generation are grappling with considerable difficulties in procuring insurance schemes that offer fitting coverage and reasonable premiums.

This agreement is profound for both parties involved. It signifies their cooperation in identifying a reputable market and orchestrating comprehensive insurance programmes tailored for Petrovietnam's chain of coal power plants. These programmes encompass a range of insurance types, such as property insurance, construction and installation insurance, insurance for equipment transportation, coverage for business interruptions and power output, liability insurance, employer liability insurance, healthcare insurance, and additional insurance services that may be required by PVPGB.

PVI Insurance is poised to support PVPGB in the training of insurance and risk management personnel, provision of insights into the prevailing landscape of international coal power insurance markets, and the presentation of expert analyses in the domain of insurance. This collaboration aims to empower PVPGB in making well-informed insurance decisions that safeguard both their assets and personnel. — VNS