Insurance broker McGill and Partners and risk analytics provider Renew Risk have developed catastrophe models for offshore wind portfolios.
The partners built an initial five models in the Oasis framework, an open-source Cat model platform, covering Northeast US hurricanes, Taiwan earthquakes and typhoons and Japan earthquakes and typhoons.
These models will assist in providing McGill and Partners with a fuller understanding of the natural peril risks, determining appropriate insurance limits, and grasp of risk aggregation across multiple windfarms in one region.
Tom Sexton, Partner and Head of Renewables, Power and Energy at McGill and Partners, said: “There has been a pressing need for a custom-built offshore wind catastrophe model to accurately assess the probability of loss for this rapidly developing asset class in high-risk zones.
“These models will assist both offshore wind clients and insurers to access more efficient risk transfer capital. They will enable insurers and reinsurers to price coverage more accurately, understand asset class aggregations, and assess offshore wind’s impact on other lines of business – previously inaccessible insights.
“This will give insurers and reinsurers the confidence to provide greater capacity at more appropriate pricing levels to our offshore wind clients in high catastrophe zones.”