Kathmandu. Insurance has become an unexpected strategic war for renewable energy companies. Because they are preparing to adjust to the next wave of technological innovations in this field.
According to a WTW report, companies will have to continue upgrading their systems in the next few years to be ready to adjust to large wind turbines, solar and battery installations. In addition, work will have to be done to develop new energy sources.
According to the report, renewable energy insurance will be a challenge for the markets. “This makes it difficult to adjust to new and complex technologies at the pace of the insurance market,” the report said, adding that the insurance market is fully aware of billions of investments made in the renewable energy sector. Insurers are investing heavily in restructuring, retraining and recruiting underwriters and brokers for the short-term and long-term future. They are well placed as enablers of global energy transitions. ’
There is mixed data that will benefit insurers in the renewable energy market. “The rapid pace of innovation, the anonymity of model technologies, and the high frequency of past losses have challenged the interests of insurers,” the report said.
As a result, there has been a mismatch between technical preparation and professional insurance qualifications. “Renewable energy companies should engage with their field specialist risk engineers to educate insurers about the technologies,” the WTW suggested. ’
Using expert engineering insights to give insurers greater access to data will help insurers make decisions about risk and pricing. The renewable energy sector can also explore balancing traditional coverage with alternative solutions such as flexible risk transfer and performance insurance.
