No. of Recommendations: 3
The level of investment into data centers globally may soon make it necessary for insurers to begin selling securitization products to spread the risk among a broader pool of investors, according to Zurich Insurance Group AG.
The average value of a data center project within Zurich's portfolio has increased from $150 million to $3 billion, and the increased involvement of private credit has led to the elimination of loss limits.
Insurable risks for data centers include damages from weather, and cumulative global insurance premiums associated with data centers are estimated to reach $134 billion between 2026 and 2030, according to a report by Artemis.
bloomberg.com - Zurich sees data center boom spurring insurance securitzation 