Renewable energy: new risks require customised insurance solutions

The recent climate summit in Sharm El Sheikh shows how pressing the climate issue is. In addition, the war in Ukraine and the associated energy crisis are forcing Europe to supply as much energy as possible itself. With the European Green Deal, Europe aims to become the first climate-neutral continent by 2050. In order to do this, CO2 emissions must be reduced from 1990 levels by at least 55% by the end of 2030. This is an ambitious goal, in which the role of renewable energy should not be underestimated. Innovations and new technologies are being developed, and these entail new risks. Transferring the associated new risks to the insurance industry requires customised insurance solutions and in-depth knowledge.

The renewable energy sector needs to be insurable, and to have adequate insurance coverage at an affordable premium. This is a challenge in itself, especially because of the rapid technological evolutions in recent years. For example, wind turbines providing 500 kilowatts and with a height of 60 metres have now made way for turbines providing 15 megawatts with a tip height of 265 metres. The risks have thereby increased, as have damage costs, because repairs have become more complex. Knowledge and experience in the realisation of such projects are indispensable for future-proofing these developments.

“As the largest insurance broker and risk consultant in Belgium, Vanbreda Risk & Benefits is strongly committed to innovation and product development in order to be a knowledge partner for the renewable energy sector. We do this through future-proof customised insurance solutions, which we develop in consultation with the renewable energy sector and the insurance industry. Assessing risk and transferring it to the insurance industry requires expertise and access to a network of specialised national and international insurers. And it is precisely here that Vanbreda Risk & Benefits plays a very active role and continually invests in knowledge and experience needed to provide companies with optimal guidance in this,” says Jacob Strijker, Executive Broker of the specialised Construction & Engineering Team at Vanbreda.