Responding to the insurance needs of the renewable energy sector
Once an emerging industry, alternative energy has now become an international business, expanding all over the world and involving major global players. The global need for reliable and comprehensive renewable energy sector insurance to support these projects is now more apparent than ever.
Wind and solar power projects in particular are becoming larger in scale and will continue to grow in the future. Their risks are growing too – and Allianz has been one of the first global insurers to respond to this challenge with tailor-made renewable energy insurance solutions.
Allianz Global Corporate & Specialty's specialists have a proven track record of support for the development, construction and operation of the largest cutting-edge renewable energy projects.
Established engineering firms, energy providers and manufacturers are now joining forces with pioneers in renewable energy to keep up with demand. They are among the largest companies in the world and are well accustomed to the challenges of major technical risks.
However, in this rapidly growing sector, they find themselves managing projects based on often prototypical technology in unusual settings, requiring renewable energy sector insurance products that must be just as intricately designed for these projects.
Solutions to alternative energy sector insurance challenges
Whether offshore wind power in ever-deeper seas or vast solar thermal energy parks in distant deserts, the challenges and risks are complex.
Risks range from from natural hazards, mechanical breakdowns and even serial losses to gear boxes and foundations. Probable maximum losses can easily reach a billion dollars if there is a major damage that triggers a business interruption.
Weather Risk Management with ART
The unpredictability of weather, such as fluctuations in wind generation, can significantly impact the gross energy production of alternative energy plants. Allianz Risk Transfer (ART) offers Weather Resource Protection in anticipation of energy-generation shortcomings.
Such protection covers short- and long-term risks at single locations or numerous assets within a portfolio. Our policy also covers extreme scenarios, providing financial security for projects, and protects against construction delays due to risks from excess wind, for example.
ART has developed a full weather risk management policy product line that supports risk analysis, structuring and execution for supply management in hydro, wind and solar, demand management in heating and cooling, operational risks in shipping and plant cooling, promotional tools and budget management.
Allianz Global Corporate & Specialty has both the global reach and the technical expertise required to manage emerging risks in this evolving industry. Our renewable energy sector insurance solutions include:
- Risk consulting for all project phases
- Systems monitoring and regular consulting during operation
- Engineering cover for construction phases (incl. delay in start up cover/advance loss of profit) and operational risk
- Property cover incl. Business Interruption
- Third-party liability
- Environmental liability
- Project cargo and transportation coverage
- Business continuity support
- Directors & officers management liability
- Marine and aviation hull and liability cover (for support assets)