Mitigating the impact of current market conditions As the renewable energy market continues to harden, being aware and addressing the key underwriting criteria that impact insurer’s appetite for the risk will be the difference between delivering a successful or poorly constructed insurance program. As part of the insurer engagement process, presenting the project in the best possible light will assist insurers to make informed decisions around their potential participation. BMS recommends a structured approach to market engagement based on the following: ● Early preparation and planning – from the outset of a project development or an annual renewal, setting out a timeline of key milestones will ensure the market engagement process is the most effective and delivers the best outcomes. ● Risk workshop – a risk workshop with the project team will provide the foundation for identification of key risks in the information gathering and underwriting review processes for the development of an optimum insurance program for the construction and/or operational phases of the project. Identification of key risk exposures and understanding of loss scenarios will assist insurers in deploying their maximum available capacity. ● A focused engineering & operations approach – A key element of the market engagement process is encouraging insurers to engage with the technical experts within their underwriting team, through the provision of an extremely high standard of technical data. Insurers are increasingly influenced in their decision-making process by their internal engineering department’s review and analysis of the key risks; therefore, we will actively promote a channel by which Insurers can be informed to aid this process. ● Risk prospectus – to positively differentiate the project to insurers our Risk Prospectus (co-developed by BMS and the Project Team) will contain detailed information based on the key underwriting criteria, as highlighted in Figure 8 below. ● Insurer engagement – Even with the best information, unless you can articulate this effectively to insurers, you may not get the best outcome. In respect of larger or more technically challenging projects in particular, the most effective way to articulate and differentiate your risk to the market is by way of Insurance market presentations, both locally and internationally to a selection of potential insurers. This process supports the Risk Prospectus / Underwriting Submission provided to insurers and provides further opportunity for insurer / client engagement.
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