Claim trends in Australia: 2016 to 2020
The claims data provided includes:
● A high level claims overview – The number of claims and percentage quantum of claims split between wind and solar projects; ● A breakdown of the claims activity over the project life-cycle – A review of claims activity occurring during the construction (including marine) and operational phases of the project life-cycle; ● A review of the internal and external claims perils – A categorised analysis of the internal and external perils that have driven claims activity; and ● An analysis of claim types – A detailed breakdown of the proximate cause of claims.
The data outlined over the coming pages provides a detailed breakdown of the claims activity in the Australian market over the period 2016 through to 2020. The data has been provided by GCube and is based on their client portfolio performance. Whilst this data will not capture all claims activity in the Australian Renewable Energy market, as a major global insurer in the sector and one of the early participants in the Australian market, their data provides a broad representation of the market losses as a whole.
High level claims overview The following graphs provide a high-level overview of the claims activity in Australia between wind and solar projects over the 2016-2020 period.
Figure 3: Percentage (%) of claim quantum incurred (AUD) split between wind and solar projects*
Figure 2: Number of claims split between wind and solar projects*
20 25 30
20% 40% 60% 80% 100%
10 15
0 5
0%
2016 2017 2018 2019 2020 Solar Wind
2016 2017 2018 2019 2020
Solar % Wind %
Figure 2, shows how claims activity increased over the period between 2017 to 2019 which correlates to the increased project construction in the sector over the 2015, 2016 and 2017 periods. Similar to the split of number of claims between wind and solar projects, claims arising from wind projects generated the higher percentage of monetary loss to insurers as seen in Figure 3. This is reflective of the per-unit cost of major components for wind projects including generators, gearboxes, blades and towers, as well as the higher revenue at risk for what are generally larger projects.
* Source: GCube
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