Aviva and Supergen Offshore Renewable Hub have partnered with the University of Exeter to fund a four-year PhD project aimed at developing a new risk management framework for offshore wind construction and operations’ insurance programmes.
The offshore wind sector continues to grow, with wind farms incorporating different technologies, including innovations with limited construction and operational track records. As a result, insurance programmes must regularly adapt their risk management approaches, often relying on historical data and assumptions.
The PhD project seeks to address these challenges by evaluating existing insurance risk management practices for offshore wind farm construction and operations.
The new framework aims to help mitigate construction and operational risks and will be applicable to the current global fleet of offshore wind farms, with the flexibility to adapt to future projects using emerging technologies.
Aviva intends to use the findings to refine its underwriting strategy and decision-making process for offshore wind insurance. The focus will be on identifying key factors that contribute to significant losses and improving the risk assessment process.
The research students undertaking the project will complete several placements over the four-year period with Aviva Risk Management Solutions, which will oversee the project. The placements will provide exposure to Aviva’s data, analysis tools, and risk assessment methods for offshore wind insurance submissions.
A steering committee comprising industry stakeholders, including representatives from the offshore wind sector, McGill & Partners, and the Offshore Renewable Energy Catapult, will provide guidance. Each member will contribute perspectives from clients, brokers, and the wider industry.
“By funding this PhD project, we are not only supporting cutting-edge research but also enhancing our ability to manage risks in the offshore wind sector,” said Matt Washington, managing director of global, corporate and specialty at Aviva. “This research has the potential to minimise risks for our customers and identify emerging technologies that will shape the future of offshore energy, making the transition to renewable energy easier and helping the UK get ready for the future.”
Professor Philipp Thies of the University of Exeter added: “This is an important area of work and brings together our risk and reliability work for offshore renewable energy with the commercial insurance perspectives. Through its partners, the project will have access to a unique data set to develop a new risk management framework.”
The offshore wind energy sector has expanded significantly over the past decade. In 2020, offshore wind accounted for 13% of the UK’s total electricity generation. This growth is projected to continue, with planned offshore wind projects across the UK and Europe expected to total 108GW by 2030.
The first research paper from this project, focusing on offshore wind cable failures, was presented at the RENEW 24 Conference in Lisbon in November 2024.
