Insurance is and has been the most efficient tool for transferring risk for energy companies. It is the cost-effective way to replace capital, protect cash flow, facilitate financing and maintain investor confidence.
Understanding Your Risks
Members of our team have extensive international experience in the entire value chain of the risk management process, from corporate risk management and finance, through insurance broking, underwriting and finally claims handling and management.
Our thorough hands-on understanding of the challenges of today’s power utility industry, various stakeholders’ expectations and the operation of insurance and reinsurance markets makes us capable of being clients’ risk management partners rather than just an insurance intermediary.
Our risk engineering team supported by world-renowned external experts can provide our clients with independent technical analysis and risk improvement recommendations.
As much as understanding individual and complex aspects of clients’ risk, it is equally essential to communicate them effectively and efficiently to insurance markets. This is especially important with respect to the energy, power and mining sector, where environmental and social aspects are currently being considered as important as technical underwriting information.
Providing Tailored Solutions
A successful risk transfer program must be designed to address individual clients’ circumstances, such as technical risk features, the company’s risk appetite and risk tolerance, the strength of its balance sheet and cash flow, lenders’ and shareholders’ requirements and so forth. For large corporate risks, the often-quoted adage that “no two risks are alike” rings particularly true.
Because of excellent and long-standing direct relationships within key insurance and reinsurance marketplaces worldwide, our team members make sure that our clients are supported with up-to-date market knowledge in their risk management decisions.
This is how we classify our services and solutions in order to fit the specific demands of the individual industry sector:
Creating Added Value
In many sectors, including power and renewables, doing business on a national and international scale has become significantly more competitive. One source of competitive advantage is the improvement in the effectiveness and efficiency of risk management processes. Therefore, the benefit of risk management goes far beyond the lower cost of insurance premiums.
Additionally, many power utility companies are operators of critical infrastructure and as such are subject to stringent regulatory regimes. Non-compliance with these regulations can result in far-reaching consequences including, but not limited to contractual or administrative penalties.
Finally, the power industry will be at the heart of what is branded as the fourth industrial revolution. As a result of this process, global generation and consumption of electricity within the next three decades is expected to grow by 50% or more. To cope with the increased demand in future, significant investments will be required.
Implementing state-of-the-art risk management tools and processes helps our clients ensure that regulatory requirements are met.
Comprehensive insurance programs, as well as prompt and effective claims handling processes, ensure that any interruption of business operations due to fortuitous events is as short as possible and the implementation of risk engineering recommendations can reduce the probability and/or severity of loss in the first place. Finally, specific insurance requirements are often required of externally financed new-build projects.
Related Solutions
Risk Consulting
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Zviadi Vardosanidze
Group Practice Leader Energy, Power and Mining
T +43 664 962 39 04
Pawel Kowalewski
Practice Leader Power & Renewables Division
T +48 507 085 066
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