Lawrence Berkeley National Laboratory
U.S. Department of Energy

The Energy Efficiency as an Insurance Loss-Prevention Strategy Website

White Paper

Energy Efficiency:

No-Regrets Climate Change Insurance for the Insurance Industry

Contents

Evan Mills, Ph.D.

Center for Building Science
Energy & Environment Division
Lawrence Berkeley National Laboratory
U.S. Department of Energy

August 20, 1996

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Update of a version presented at the Climate Change Analysis Workshop Springfield, Virginia

Hosted by:
U.S. Department of Agriculture
U.S. Department of Commerce
U.S. Department of Energy
U.S. Department of State
U.S. Environmental Protection Agency

The U.S. Department of Energy's Center for Building Science, with an interdisciplinary staff of 225 people, conducts research on a wide spectrum of technical, economic, and regulatory aspects of energy-efficiency and indoor environmental quality. The Center is an international leader in developing new energy-efficient technologies and formulating strategies for utilizing energy efficiency as a climate-change mitigation strategy. The Center provides technical support to energy and environmental policymakers, carries out field applications of advanced technologies, performs market assessments, trains students in the energy field, and transfers information and technology to the private sector. Lawrence Berkeley National Laboratory is part of the family of DOE National Labs conducting research on energy and environmental issues.

This work was funded by the Assistant Secretary for Energy Efficiency and Renewable Energy, Office of Building Technologies and State and Community Programs, of the U.S. Department of Energy under Contract No. DE-AC03-76SF00098. LBNL Report 38535.

Correspondence: Lawrence Berkeley National Laboratory
MS 90-3058, Berkeley, California, 94720, USA
tel: +1.510.486-6784 ´ fax: +1.510.486-5394
e-mail: emills@lbl.gov

Contents

Summary

Context

The Energy Connection

Technologies that Reduce the Likelihood of Insured Losses while Increasing Energy Efficiency
Reducing Fire & Wind Damage
Reducing Ice & Water Damage
Reducing Damage from Power Interruptions & Extreme Temperature Events
Reducing Professional Liability
Reducing Occupational Health and Safety Risks Related to Lighting
Reducing Indoor Air Quality Problems

Potential Roles for the Insurance Industry in Increasing Energy End-Use Efficiency
Adopt Uniform Protocols for Quantifying the Risk-Reducing Aspects of Energy-Efficiency Measures
Develop Innovative Insurance Products that Reward Energy Efficiency
Differentiated Premiums
Purveyors of Energy-Efficiency Services
Radon Insurance 
Pay-At-The-Pump Auto Insurance
Make Buildings Owned by Insurance Companies More Efficient
Foster Improved Energy Efficiency and Indoor Air Quality in the Process of Financing and Purchasing Buildings
Collaborate with Energy and Environment Regulators and Stakeholders
Participate in the Research, Development, and Commercialization of New Energy-Efficiency Technologies and Services

Recommendations
Technology Assessment and Research & Development
Market Transformation
New Partnerships

Acknowledgments

Endnotes


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