The platform, backed by London insurers, provides up to £100 million per declaration capacity.
Designed to streamline the process of securing construction and operational insurance for renewable energy projects, the platform aims to offer clients a means of managing their risk coverage.
"This smart solution gives our UK renewable energy clients a wider range of competitive and flexible markets," Paul Adams, Howden's global head of Power & Renewable Energy, posted in a comment.
The launch follows Howden Re’s recent analysis of the renewable energy sector’s growing significance within the insurance industry.
According to its report, Watt Now? Reinsuring the Renewable Energy Transition, the shift to renewable energy is accelerating, with projections indicating that, by 2030, renewables will account for 74% of growth in global primary energy consumption. This trend is driven by declining costs in solar, onshore wind, offshore wind, and battery energy storage systems (BESS).
As governments implement incentives to encourage clean energy adoption, Howden Re highlighted the need for insurers, cedents, and other industry stakeholders to enhance transparency and collaboration in risk management. The firm also identified evolving risks associated with renewable energy projects, including exposure to natural perils and technology-specific challenges.
In the company's article last year, associate director James Metcalf said that the renewable energy sector is undergoing rapid transformation, which presents both risks and opportunities.
Meanwhile, managing director Simon Brooks said that the sector is at a critical juncture, requiring tailored risk assessment strategies to address evolving challenges. He pointed out that as the market expands, insurers must refine their approach by developing bespoke solutions suited to the specific characteristics and construction requirements of different energy technologies.
The launch of this latest initiative comes as Howden Group continues to expand its global presence. For the financial year ending September 30, 2024, the company reported a 23% increase in adjusted revenue to £3.01 billion, with organic revenue growth reaching 15%.
How will the evolving risk landscape shape the future of renewable energy insurance? Share your thoughts in the comments.
