FM Global has expanded its renewable energy insurance policy to clients in Europe, the Middle East and Africa (EMEA), aiming to support the region’s transition to alternative energy sources.
FM Global established FM Renewable Energy last year, a division focused on research, standards development and loss-prevention engineering for utility-scale ground-mounted solar, onshore wind power and battery energy storage systems (BESS).
The insurer has provided coverage for power generators for 70 years, with experience across various energy sectors, including hydropower, biomass and waste-to-energy.
Doug Patterson (pictured above), senior vice president of forest products and FM Renewable Energy at FM Global, said the company’s resources position it to support clients in their energy transition. The company made notable moves to support this development, with FM announcing a third resilience credit allocation, totalling over US$1 billion since the programme began in 2022.
The expansion of FM Global’s renewable energy coverage comes as governments and businesses in the EMEA region work toward climate emission reduction targets. The renewable energy sector is expected to see continued growth, but the industry faces challenges linked to emerging technologies and exposure to climate-related hazards.
In the UK alone, premium income from renewable energy insurance surged by 43% in 2023, reaching £532 million. Similarly, Lloyd's of London reported growth in its renewable energy sector during the same period.
The increasing frequency and severity of climate-related events have also underscored the necessity of renewable energy insurance. Unpredictable weather patterns have led to significant claims, such as hailstones damaging solar panels and lightning strikes on wind turbines, resulting in insurers facing larger-than-expected liabilities.
Consequently, policyholders in the renewable energy sector have seen insurance premiums rise by 20%-40% over the past year, particularly in regions prone to natural catastrophes.
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