Renewable projects face insurance premium spike, says GCube

Specialist provider increases underwriting capability to $800million as market takes on increased level of industry risk

London 20th October 2008 - Renewable energy projects around the world can expect to see insurance premiums rise by between five and ten percent over the next two years, as providers take on greater levels of industry risk. This is according to GCube, the leading provider of insurance services for renewable energy initiatives.

"As a direct result of ongoing financial market instability, the liquidity difficulties experienced by the industry, and substantial losses arising from Hurricane Ike in the US, renewable insurance premiums will almost certainly rise," comments Fraser McLachlan, Chief Executive Officer, GCube. "A soft market has forced renewable insurance premiums down to a level that is unsustainable in the long term, particularly since providers are being asked to take on greater levels of project risk. And while this will undoubtedly place increased pressure on renewable energy directors in the short term, it's important to recognise that this anticipated shift will enable providers to continue to develop their range of policies on offer, in the face of a rapidly maturing market."

With green issues being driven up the political agenda, the market for renewable energy insurance is tracking the growth enjoyed by the wider renewable energy sector and is expanding at a rate of about 28 percent, annually.

To meet this growth, GCube has secured an increased underwriting capacity, enabling it to write business up to a value of $800 million. This combined with the development of a series of longstanding partnerships agreements with specialist maintenance and repair contractors around the world will enable the business to meet the needs of its clients, while at the same time providing a level of service that has not previously been associated with the renewables market.

GCube provides specialist insuring capabilities in six renewable energy sectors - wind power, biofuels, hydroelectric power, solar power and wave/tidal energy. The specialist cover includes transit, construction and operational risks, right through to business interruption and general liability.

GCube will be exhibiting at the British Wind Energy Association conference at the Excel Centre in London, stand 73.

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For further information please contact:

Adam Barber or Roland Godfrey-Davies
Chalk
T - 020 7405 0974
E - adam@hellochalk.com  / roland@hellochalk.com

Richard Carroll
GCube
T - 020 7977 0204
E - Richard.carroll@gcube-insurance.com

About GCube

GCube provides comprehensive insurance services for the renewable energy initiatives. With its offices on both sides of the Atlantic the business has global insurance capabilities in six renewable energy sectors - wind power, biofuels, hydroelectric power, solar power, wave energy and tidal energy.