Insurance Meets Methane Detection: A Turning Point for Energy Risk Management

Momentick, Sompo Japan Insurance, Sompo Risk Management, and JGC Global have announced a strategic partnership to launch what is being described as the world’s first methane detection solution integrated with insurance. Available now to Sompo’s clients in Japan and abroad, this collaboration signals a new era in how climate and financial risk intersect.

Insurance in Oil and Gas: Business as Usual

Normally, insurance in the oil and gas sector has functioned as a safety net after the fact. Companies purchase coverage to protect against losses tied to leaks, fires, explosions, or infrastructure damage. Premiums are typically based on historical risk data, compliance audits, and safety records.

Methane, however, has been a blind spot. Leaks often go undetected until they escalate, creating both financial losses and regulatory liabilities. Even when companies implement their own leak detection programs, these operate separately from their insurance coverage. Until now, insurers had little visibility into real-time emissions, and their role was primarily reactive.

What Changes with Momentick and Sompo’s Collaboration?

This partnership brings a new model of risk management to the table:

• Proactive prevention, not just compensation. Frequent satellite-based monitoring and on-site MRV allow leaks to be detected before they cause costly incidents.

• Smarter risk assessment. Insurance providers can align premiums and coverage with current, verified emissions data instead of relying only on historical patterns.

• Greater accountability. Transparent emissions intelligence helps clients strengthen compliance, avoid penalties, and demonstrate responsibility to regulators and investors.

• Climate alignment. By cutting methane faster, companies advance their sustainability goals while insurers reduce exposure to climate-driven risk.

Future-Proofing Sustainability Commitments

The energy sector is under increasing pressure to align with global climate targets.

• The Global Methane Pledge sets a 2030 goal to cut methane emissions by 30% below 2020 levels (just five years away from when this article is being posted).

• Frameworks such as OGMP 2.0 are raising the bar for methane reporting, requiring companies to move beyond estimates toward verified, measurement-based data.

For many operators, this creates a compliance and credibility gap: how to prove they are truly managing emissions, not just reporting them.

By embedding methane detection into its risk management offerings, Sompo is equipping clients with the tools to future-proof their operations. The integration of satellite intelligence, on-site MRV, and insurance shifts accountability from long-term pledges to near-term measurable action, helping companies reduce exposure, build trust with regulators and investors, and stay ahead of tightening sustainability requirements.

Looking Ahead

By embedding emissions intelligence directly into insurance, this partnership creates a new blueprint for risk management: one that is proactive, data-driven, and climate-aligned.

If widely adopted, this model could:

• Lower premiums for companies with strong monitoring and rapid mitigation.

• Provide insurers with more accurate exposure assessments.

• Drive faster progress toward global methane reduction goals.

This collaboration demonstrates how the worlds of energy, insurance, and technology can come together to build resilience for businesses, investors, and the planet.

Conclusion

Insurance has always been about managing risk. Now, it’s evolving to prevent risk before it happens. With Momentick’s satellite intelligence, JGC’s on-site MRV expertise, and Sompo’s leadership in insurance innovation, energy companies have an opportunity to turn climate accountability into a business advantage.