The renewable energy insurance market (consistent with the global insurance market as a whole) is experiencing a period of turbulence as it looks to re-adjust itself after a sustained period of soft market conditions. Whilst capacity remains stable, appetite has reduced due to a sustained period of competitive pricing and increased claims.
There has been a noticeable trend in the transition of the competitiveness of capacity from the London / European market to locally domiciled capacity who initially were unable to follow the soft international pricing but are now seeing improved terms and conditions which is attracting them to underwrite risks in this sector. At the same time over this period, local insurers spent time educating and acquiring staff to be able to start to capitalise on this sector.
Key Risk Factors
- Contractor error during construction
- Growing size of turbines and a lack of type certification
- Insolvent equipment manufacturers
- Natural catastrophes
- Warranties & Obsolete Technology