Winds of change in green energy underwriting
Launch of GCube provides universal cover for worldwide renewable
energy industry
7th January 2008 – GCube Underwriting Limited (UK) and GCube Underwriting Services Inc. (US) today opens for business in a bid to provide comprehensive insurance services to match an increased international appetite for renewable energy initiatives. Operating on both sides of the Atlantic, the specialist insurance underwriter will be unique in its ability to globally underwrite any renewable initiative up to $600m for a single project on or offshore, making it the largest provider of renewable insurance capacity in the world.
The venture will respond to an increasing need for a diverse renewable energy insurance protection market that offers excellent security for potential projects globally. GCube Underwriting Ltd, based in London, is authorised and regulated by the Financial Services Authority and GCube Insurance Services Inc., based in Newport Beach, is licensed by the California Department of Insurance. There are future plans to open other offices in more locations.
GCube will provide specialist insuring capabilities in six renewable energy sectors – wind power, biofuels, hydroelectric power, solar power, wave/tidal energy – whilst providing comprehensive “cradle to grave” coverage throughout a project lifecycle. The specialist cover will include transit, construction and operational risks, right through to business interruption and general liability.
In addition to underwriting services, GCube will provide a range of support services, including access to engineers and a dedicated claims and loss adjustment unit targeted specifically at the renewable energy industry. The support services underline the in-depth sector expertise that exists within the business and will ensure that customers keep a tight rein on the premiums and future policy costs.
“In the UK, only three percent of our total energy output comes from renewable energy sources,” commented Fraser McLachlan, Chief Executive Officer, GCube. “However this is likely to undergo dramatic development in order to meet the government’s ambitious 2020 target in which 20 percent of the country’s energy comes from renewable sources.“
At the recent Bali Climate Conference, the European Union headed efforts to secure a new set of targets that would reduce emissions from developed nations by 25-40% by 2020. Whilst the bid was implacably opposed by the US, Canada and Japan, eventually the EU and US agreed to drop the binding targets and China agreed to soften language on commitments from developing countries.
“This puts GCube on the road to achieving some real progress in the installation of the renewable technologies” stated Fraser McLachlan. “In global terms we expect wind to continue to grow at its current rate in excess of 20% as a credible and economically competitive provider of renewable energy. With newer technologies, such as solar, bio fuels and wave/tidal energy, we expect even larger growth targets in percentage terms.
“We are the only insurer really ready for the new technology on a global scale, whether it is on or offshore. We started in the renewable energy insurance business over 20 years ago and are well aware of the challenges insurers will face over the next few years,” McLachlan added.
As part of the newly formed management team, Fraser McLachlan will take the role of Chief Executive Officer, Kevin Collins is appointed Chief Operating Officer, and Matthew Melville becomes Chief Underwriting Officer. These appointments bring substantial sector experience to the business, having successfully established WindPro, a wind energy underwriter that now forms a key part of the new entity.
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