GCube partners with Renew Risk on offshore wind insurance model

GCube, an underwriter for renewable energy projects, will be incorporating catastrophe risk models for offshore wind assets from Renew Risk, a Software-as-a-Service (SaaS) risk analytics provider, to optimise insurance pricing.

GCube will use Renew Risk’s catastrophe risk models to help them in understanding the risks and liabilities of offshore wind assets such as extreme weather events, inter-connected component damage probabilities, operational failures and expected losses.

The models are based on advanced physics, data analytics and simulation techniques and will be able to help GCube quantify these risks to allow for tailored and competitive pricing.

Renew Risk's models will also be integrated with Nasdaq Risk Modelling for Catastrophes, a SaaS platform that provides access to a broad range of catastrophe risk models and services to (re)insurance firms, brokers and financial institutions.

Have you read?
Partnership formed to deliver the Åland Energy Island project
Tier one contracts finalised for Baltica 2 wind farm

Incorporating Renew Risk onto Nasdaq’s platform will enhance users’ ability to assess risk associated with offshore wind farms, estimate losses, compare project risk-return profiles, and efficiently allocate capital.

Renew Risk’s models account for different factors that affect risk and liability such as the location, age, size, power, and gearbox system of the turbines, the cost and availability of replacement parts and vessels, the downtime and reliability of the operations, and the Business Interruption (BI) losses. This will allow for GCube to offer optimal insurance pricing to its customers.

These models also offer comprehensive coverage of high-risk regions, encompassing Northeast US hurricanes, Taiwan earthquakes and typhoons, as well as Japan earthquakes and typhoons.

Fraser McLachlan, CEO of GCube Insurance, said: “We are delighted to partner with Renew Risk. This partnership will enable us to enhance our offshore wind services by using Renew Risk’s pioneering catastrophe models. Renew Risk’s models will help us better understand and quantify the complex catastrophe risks of offshore wind assets, which will allow us to offer more tailored and competitive pricing.”

James Lay, senior director at Nasdaq, commented: “The extraordinary growth of the offshore wind industry demands an increasingly sophisticated insurance ecosystem to serve it. This is driving a critical need for advanced models capable of accurately assessing risk. As the first models of their kind available in the Oasis format, integrating Renew Risk with Nasdaq’s platform will provide seamless access to the tools necessary to support the continued growth of the sector."

Ashima Gupta, co-founder & CEO at Renew Risk, added: “We are excited to partner with GCube Insurance & Nasdaq. These collaborations will enable us to showcase our innovative catastrophe models platformed on Nasdaq, rooted in cutting-edge advanced physics, data analytics and simulation techniques. Our models will assist GCube in enhancing its ability to evaluate and handle intricate catastrophe risks associated with offshore wind assets, ultimately translating into amplified advantages for GCube’s esteemed clients.”