Project: 800 MW US IPP
The IPP was faced with a proposed 25% rate increase on renewal, material changes in natural catastrophe (NAT CAT) sublimits and increases in both the business interruption and NAT CAT deductibles. All of the proposed changes in conditions breached tax equity requirements. It left the IPP needing to purchase expensive standalone excess NAT CAT coverage to maintain the same standard of cover as it previously enjoyed.
At this stage, Renewable Guard was appointed broker of record and given the opportunity to re-market the risk and achieved:
- A USD 750,000 net premium reduction on the terms proposed by the previous broker;
- Maintained tax equity-compliant deductibles;
- Maintained the original NAT CAT sublimits;
- Recovered the cost of risk engineering surveys from the IPP’s insurer panel as a USD 34,000 premium reduction.
To achieve this result, we recognized the need to market the program to specialist renewable energy underwriters focused on onshore wind and solar that regard the value in comprehensive risk engineering surveys and a competent senior management team that respects the need for diligent risk management, and lured by an interest in the IPP’s rapidly growing portfolio. To draw the interest of these underwriters, we also worked with our property wholesaler to create a succinct video submission summarizing the risk(s).
After the successful placement, we followed-up on interest from the panel in the IPP’s global assets by arranging meetings with three select insurers and the IPP’s team with a view to further improve on the risk in future years.