This past year has thrown up some unexpected market challenges to say the least, but we have also had some strong positives to take away.
We’ve spoken many times about a market ‘reset’. 2021 hasn’t quite been a turning point as the continued influx of new entrants has ongoing effects on the stability of the renewables market – but it does seem trends such as the rising tide of extreme weather losses, alongside major quality control and installation issues in offshore wind, are forcing an overdue market response.
In this context, it has been hugely valuable to reconvene in person again in the latter half of this year to drive forward the dialogue on the industry’s challenges. Our Renewable Energy Risk Seminar in Edinburgh, and our Advisory Council in Newport Beach last month were amongst the best-attended and most valuable we’ve held. Moreover, we’ve seen highly productive engagement around our reports, Hail or High Water and Uncharted Waters.
Looking forwards into the New Year, it’s vital firstly that we don’t forget what we have learnt from these conversations, and secondly that we take action on these lessons.
I’m sure the prospect of ‘Dry January’ won’t appeal to many this year, so below we set out some more realistic New Year’s Resolutions for the renewable energy insurance market to aim for heading into the next 12 months.
Three resolutions for the New Year
- We must take action to prioritise quality control in all areas of the renewable energy supply chain. Through hardening market conditions and sustainable terms, we will be able to drive this forward and support the further growth of the renewables market, particularly offshore wind.
- We must also sustain a transparent and collaborative dialogue between the insurer and insured, as well as all of the stakeholders across the wind and solar industries. As part of this we will continue to share our insights, and engage in active discussions, be they at our events or through our reports – and we expect the same levels of transparency in response.
- Going forwards, we want to see the market work together on terms and pricing to ensure the ongoing availability of sustainable renewable energy insurance. Our discussions at events this year showed us that we’re on the same page in our expectation that the market will continue to harden in the in the months to come. We need to nurture this transition and allow the industry to continue to develop, without compromising on profitable business.
In 2022, all being well, we plan to host a European Renewable Energy Risk Seminar in Amsterdam in H1, as well as our Advisory Council in the latter half of the year. These both present opportunities to check in on these resolutions, chart progress and see where we still need to go.
In the meantime, enjoy this edition of the newsletter – ideally with a mince pie, some speculaas or an egg nog – and we look forward to catching up again in the New Year.
CEO, GCube Underwriting Ltd.