This new insurance policy provides 25 years' warranty protection for Suntech in the event of a significant decrease of performance for modules - a move expected to help expand sales by providing Suntech's 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 UK-based consultancy OST Energy. The announcement followed Suntech's modules receiving the VDE-quality tested certification, which recognises 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."
"We are excited to work with Munich Re under our co-operation agreement in the renewable energy sectors to support Suntech as it emerges with a new business strategy and grows in new verticals globally," said Xin Wang, general manager of Property & Casualty at Ping An. "Our role is to promote and protect the development of Chinese PV companies and we are proud to offer reliable long term insurance coverage capacity to Suntech now and for many years to come."
