In Australia/New Zealand our Energy team is headquartered in Perth, Western Australia, and we draw on international capabilities throughout the Gallagher global business. Our services include advice to principals and contractors on projects of all sizes and scope, as well as project placement in multiple markets. We've also got the expertise locally to guide current and future energy clients through the energy transition to renewable options.
What are key insurance challenges for businesses in the renewables sector?
Pace of change vs logistics
While there's a big push for renewables in Australia and New Zealand, the supply chains to service the demand are lagging behind which can affect ability to get equipment to site.
As a result underwriters may be reluctant to provide cover, reflected in premium costs and the imposition of terms and conditions such as higher deductibles or less coverage.
Having an experienced broker with strong market relationships increases the chances of obtaining economical cover.
Demand for increased power generation
To meet current energy needs today's wind turbines are more than 30 times bigger than they were 30 years ago, and this trend is projected to continue, while insurers are increasingly limiting cover for defects in new and untested wind projects.
Renewable assets that are susceptible to flood and wind losses
For businesses building solar and wind farms their plant may be threatened by damage due to extreme conditions, especially during the construction phase of the project.
Finding insurance cover for new risks
Incepting insurance solutions for innovative business models, such as generating hydrogen from disused soft plastics, calls for insurance industry knowledge, connections and creativity on the part of the broker.
Covering the transition from construction to operational projects
We take a holistic approach to addressing all the concerns involved including physical risks as well as contractual and regulatory risk exposures and the need to keep declared insurance values current through the construction to operational phases.
Enhancing risk management is sales and acquisitions
With considerable buy-sell transactions in this space, project risks around mergers and acquisitions for renewables projects often require specific due diligence and risk protections
As a full service broker Gallagher can assist with assessing project risks, deal facilitation, risk mitigation and enhancing investment return by providing insurance due diligence reporting and transactional risks insurance encompassing warranty and indemnity (W&I) insurance, tax liability and other contingent risks.
What renewables insurance services does Gallagher offer?
Gallagher is structured and positioned to be a trusted and advisory partner to renewable energy project stakeholders. Our team works with developers, investors, lenders and contractors and our end-to-end lifecycle expertise is an invaluable asset to any renewable energy project.
With a long-view approach to risk management requirements, our range of experience and understanding of relevant risk exposures covers:
- lenders, finance and investment requirements
- asset acquisition and divestment risks
- early project planning and design
- technological development
- construction development
- project handover/acceptance protocols
- revenue structuring
- operations and maintenance
- natural catastrophes considerations.
Why choose Gallagher renewable energy insurance expertise?
With an experienced and growing team focused on this sector, we offer expertise with insurance placement and management for onshore/offshore wind, solar, hydrogen, carbon capture, battery storage systems, hydro and bio-energy projects. This includes all aspects of a project lifecycle from conception and project financing through to construction and operational requirements.
We offered structured customised covers based on client/project need: our deep sector focus and representation has led us to develop bespoke policy wordings which have been independently reviewed and considered best in class, backed by our London colleagues, in order to obtain the best achievable deals for our clients.
We provide experience and industry fact based advice. Beyond being a service provider, we also provide trusted partnership, insight, advice and relationship focus to our energy sector clients and are committed and available when and where we're needed.
Our clients benefit from our global capability and local delivery of specialised renewable energy expertise, in offshore wind energy, for example. To meet the growing market for renewable energy insurance cover we are fast adding to our experienced team locally and continue working closely with our knowledge expert colleagues overseas.
Benefit from our renewable energy expertise
Access expertise on the ground with our local market-awarded energy specialist team in Australia, and collective international resources to take advantage of an expert risk partner in the renewable energy market. Download our renewable energy specialism capability statement.
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Sources
1Energy consumption in Australia, WorldData.info, accessed 1 Aug 2023
