October 17, 2017 by Canadian Underwriter
Hyperloop technology – a form of transport in which passengers and goods travel in capsules at high speeds – is both “feasible and insurable in the medium term,” according to a new report from Munich Re.
The Hyperloop Transportation Technologies Risk Report, released on Tuesday, examined risk landscapes for Hyperloop Transportation Technologies (HTT), which has carried out a comprehensive risk analysis of its technology along with Munich Re. The report also looked at risk landscapes for the technology itself.
The report concluded with five key observations:
Dirk Ahlborn, CEO and co-founder of HTT, suggested in a press release from Munich Re that “as we approach the commercialization of our technology, the creation of a new regulative framework is the biggest challenge. Being able to offer an insurable system is a huge milestone for this groundbreaking technology.”
HTT’s Hyperloop technology is a new form of transport which sees passengers and goods being transported in capsules travelling at high speeds in a low-pressure environment using electromagnetic propulsion, Munich Re explained in the release. The pods will travel approximately 600 kilometres – roughly the distance between Los Angeles and San Francisco or Munich and Berlin – in just 30 minutes. Thanks to a unique crowd-collaboration model, HTT is working with over 800 experts from around the world on the development and realization of the technology and a project team has been set up within Munich Re to consider the risks and challenges facing the technology.
As a next step, HTT and Munich Re will enter into a strategic partnership to develop an insurance concept and integrate an ERM system that will allow HTT to actively manage enterprise risks, Munich Re reported in the release. “It is anticipated that the services and solutions would include, among other topics, the development of a Hyperloop insurance concept,” the report said. The concept will likely “compromise not only traditional risk transfer for the relevant risk categories, but also risk-derived capital solutions to reflect the different stages of the HTT corporate development cycle and various challenges encountered in each phase of that lifecycle,” the report added.
HTT and Munich Re have partnered since 2016 with the goals of understanding the HTT business model and the functionality of the technology, developing risk landscapes and writing a report on the risks.