In an effort to bolster its customer warranties, Wuxi Suntech has tapped Chinese insurance group Ping An and Germany’s Munich RE to insure its module performance.
The company’s performance warranties will be insured by Ping An and reinsured by Munich RE.
Suntech said the new insurance policy provides it with 25 years’ warranty protection in the event of a significant decrease of performance for modules — a move expected to help expand sales by providing Suntech customers with reassurance in the performance quality of their products.
"We have great confidence that our products are of the highest quality and are built to last," said Suntech CEO Eric Luo. "But to ensure our customers feel fully protected, our new insurance policy with Ping An and reinsurance by Munich Re will allow us to continue to honor our products’ performance warranties, while still maintaining our strong financial balance sheet."
Suntech recently announced that its polycrystalline silicon modules ranked above industry standards in a technical review conducted by U.K.-based consultancy OST Energy. The announcement followed Suntech’s modules receiving the VDE-Quality Tested certification, which recognizes products with a level of quality control that goes beyond existing standards in the photovoltaic industry.
"Thanks to the cooperation with our partner Ping An, we are able to provide an innovative performance warranty insurance solution for Suntech’s modules that are fundamental to the sustainable success in the solar industry," said August Proebstl, head of Corporate Insurance Partner at Munich Re. "It sets industry standards by being the first significant deal when it comes to volume insured and indemnity offered to a manufacturer domiciled in the People’s Republic of China."
Recently acquired by Hong Kong-based Shunfeng Photovoltaics, Suntech now boasts a strong financial footing and nearly zero debt, which it says allows it to invest in the growth of its business.