Energy insurance has been given a boost with the launch of two entrants into the renewable energy sector.
Lloyd’s insurer Ascot Underwriting has made headlines by establishing a new renewable energy operation, Renewco Underwriting.
Elsewhere, Ace European Group has launched Ace Renewable Energy, providing comprehensive cover across a broad scope of renewable energy risks. Alongside more established areas such as wind power, cover is provided for complex risks including waste to energy, waste management and the production of biofuels.
According to Ascot, Renewco will be the first Lloyd’s-based underwriting operation specifically dedicated to the renewable energy industry worldwide.
Based in London, Renewco will offer onshore and offshore coverage for power generation facilities in the solar, wave, tidal, wind, biomass, geothermal and small hydroelectric fields.
Ascot Chief Executive Martin Reith said Renewco Underwriting had been created to address “the unique challenges” facing the renewable energy industry. “Leveraging our experience across many related classes of business, we can apply our expertise to supporting fledgling renewable energy initiatives as well as those already well-established and growing in importance,” Reith said.
“The innovation, dynamism and enthusiasm of the project developers mirrors our own business philosophy. We are particularly excited that we are in a position to make a real contribution to support the growth and technological development of the renewable energy industry.”
Ace Europe, whose Ace Global Markets division writes business through Lloyd’s syndicate 2488, said its own Ace Renewable Energy would provide specialist underwriting and risk management advice across the range of potential exposures including perils associated with contractors, suppliers, fire, transportation and operation.
Cover includes construction risks, third party liability, industrial risks and contractors and premises pollution.
Alistair Macintyre, UK Product Development Manager, Ace Europe, said: “This is a complex market and many covers have been limited to particular types of renewable energy production, such as wind power. When you consider that approximately 50% of renewable energy electricity capacity comes from methods such as landfill gas, waste and biofuel generation, the need for more relevant insurance cover is clear.”