UK insurer Aviva is to enter the offshore wind market as it looks to increases its support for renewable and sustainable energy production.
In announcing the move the underwriter has said it now aims to become the number one insurer of renewable energy in the UK by 2027.
Aviva was the first insurer worldwide to set a target of reaching Net Zero by 2040 and exited the London Market for insurance of standalone operational fossil fuel power generation in 2019 and now focusses on renewable energy.
Its portfolio in renewable energy encompasses onshore wind, solar power, EV charging points and battery energy storage systems (BESS), and is now more than 200% of the size of the fossil fuel book it exited, covering enough renewable energy to offset 31.5 million tonnes of CO2 annually, the carbon equivalent of driving 96 billion miles.
“Demonstrating our commitment to green energy assets, Aviva is already a leading provider of insurance for renewable energy in the London Market with an ambition to become the number one insurer of renewable energy in the UK by 2027,” it explained. “Aviva’s entrance into the offshore wind market extends its underwriting appetite and risk capabilities, and it has already insured its first risk in the North Sea.”
Aviva is offering construction all-risks and operational risks cover in offshore wind as a follow market, focussing on large renewable energy clients and projects in the UK, US and Europe, working with experienced brokers and following recognised leaders.
Adam Winslow, CEO of Aviva UK & Ireland General Insurance, said: “Aviva has a strong reputation as a lead insurer in onshore renewables and we know there is strong demand in offshore as we see this market rapidly evolve.
“Aviva has pledged to achieve Net Zero by 2040 and in November we set out our commitment to help support the UK to become the most climate-ready large economy by 20302. Supporting our growing renewable energy industry, both on and offshore, is a critical part of achieving that ambition.
“With more offshore wind projects coming on-stream all the time and many others in the planning, development and construction phases, this is a growth area and we look forward to bringing our expertise and experience to bear in this exciting space.”
The insurer added it will be supporting existing clients as they move into offshore wind with coverage aimed at windfarm developers, owners and operators.
Aviva’s announcement comes as 108GW4 of new offshore wind projects are proposed for the UK and Europe by 2030, with seven new projects slated for the UK alone during 20235.
Aviva revealed it has further strengthened its position in the renewables market, stepping up its involvement in BESS.
Batteries allow electricity from intermittent renewable energy sources, such as solar or wind, to be stored and then released as needed and have a major role to play in the economy’s transition from fossil fuels to renewables.
“Aviva has many years’ experience in insuring BESS but has now developed its own stand-alone policy wording for this technology,” It added.
“As an investor, Aviva has been involved in offshore wind projects for a number of years,” The underwriter explained. “In 2018 it provided £400 million of financing to help fund the construction of Hornsea One, off the Yorkshire coast, which can power more than one million homes with green electricity.”
More recent investments include East Anglia One, off the Suffolk coast, which has capacity for powering more than 600,000 homes.