Results of the meeting of the Client Council on Renewable Energy for 2024

MARK: Vicky Kent is head of renewable energy at Aviva and joins me now. Vicki, could you start by telling us a little about the book of business and the team you are responsible for?

VICKI: Of course, Mark. Therefore, back in 2019, Aviva decided to exit the fossil fuel power generation market and instead refocus on the renewable energy market. So the book has been up and running for about five or six years. It is growing significantly. She grew up right. We have now grown approximately fivefold. The portfolio is approximately five times the size of the fossil fuel portfolio that we closed back in 2019. In addition, we have expanded our underwriting team. So, in 2019 there were two of us. We are now a team of 11 underwriters specializing in renewable energy. In addition, during this time we have positioned ourselves well as a leading market. And to support this, we have expanded our risk analysis team. As such, we now have four dedicated renewable energy risk engineers within Aviva’s Risk Solutions team.

MARK: Renewable energy covers a fairly wide range of technologies. So what is your main area of ​​expertise in this matter?

VICKI: So our core technologies in terms of appetite are onshore and offshore wind, solar PV and battery energy storage. We primarily work with large corporate clients around the world and offer coverage throughout the entire project lifecycle. So from maritime cargo to construction risks including DSU, operational risks including BI, third party liability as well as terrorism if required.

MARK: Looking back to 2024, what were the key results for you and the team?

VICKI: We’ve had a very busy 2024 so far. We had a very productive first half of the year. We are always looking for ways to expand our capabilities to support our customers, support the transition to net-zero emissions and Aviva’s own sustainability ambitions. So if I take us back a little bit to 2023, early ’23, we’ve moved into offshore wind space. Again, this is to support our existing renewable energy customers with their needs. And for this we attracted insurers. We have also expanded the capabilities of our risk management team. We brought in someone specifically from the offshore wind industry who has experience in cables as well as offshore warranty studies, which is great because it gives us the opportunity to become a strong leader in offshore wind as well as onshore renewables. energy. .

MARK: And what was the reaction of brokers and their clients who lost from 12 to 18 months?

VICKI: Very positive. What I mean is that as projects get bigger and more complex, they’re excited to see more opportunities coming into the space, as well as opportunities that are dedicated to the space and investing in people to support their growth.

MARK: So, this is a recent decision to make your mark on one part of this market, but what other technologies are you now starting to explore and build capacity?

VICKI: Yeah, so in early 2024 we expanded into more of what we call green energy technologies, but essentially more renewable energy technologies like green hydrogen, hydroelectric, geothermal, biomass, concentrated solar.

MARK: One thing that is always in the headlines is the issue of electric vehicles. There are never enough charging points. Is this topic found on your table?

VICKI: This is absolutely true. If we are to move from petrol and diesel cars to electric vehicles, the UK’s EV charging infrastructure must be improved. We recognize this and are creating a UK product and electric vehicle charging point this year, really following the request from our brokers and our clients to offer a solution to overseas risks. To solve this problem, we have created an international charging point for electric vehicles.

MARK: But with all these really rapid changes happening in the market, how can you be sure that your policy documents, your language, are completely up to date and reflect the latest thoughts, trends and events in the market?

VICKI: So, something else that we did this year and delivered to our brokers earlier in 2024 was manufacturing, well, actually upgrading, Aviva’s wind, solar and battery energy storage units to make them suitable for use with our international clients. Indeed, as a leading market, it is only fitting that we have our own formulation suggestions. We didn’t do anything. There’s nothing crazy about it, even if it’s consistent with the kind of lighting our clients are used to. But the idea is to make sure the cover is clear to our clients.

MARK: We’ve recently had a change of government in the UK which is very interested in wind power, particularly onshore. So what does this mean for Aviva?

VICKI: This is very positive, this is fantastic news. And Aviva has ambitions to become the UK’s number one renewable energy insurer. So this clearly fits well with our own goals. And of course the UK is Aviva’s core market. So, as mentioned, we are well positioned as a leader and can continue to be a competitive leading insurer for those clients looking to develop projects in the UK. In addition, I believe we have the largest team of renewable energy risk management specialists in the UK, meaning we are well positioned to communicate and engage with our clients early on. And even with new developers, people we don’t have a relationship with yet, we encourage discussions with them, and early interaction is key.

MARK: And what would you say are the main problems that market brokers in general face in this area?

VICKI: Well, I think there’s a lot of growth and a lot of opportunity in the renewable energy space, which is great news, it’s very positive. But I believe it is critical that the insurance community continues to invest in its people, as well as attract new talent to the market, so that we have the capacity and resources to handle this growth. In summary, there are several challenges facing brokers, clients and insurers in the renewable energy market that we must address together. But now we have problems with agent technologies, problems with legacy technologies. Conversely, we have a race for power. So new technologies are being developed very quickly, new models of wind turbines are being brought to market very quickly, much larger ones. The scale and complexity of projects are increasing, and problems with supply chains have not gone away. Chinese technologies that go beyond the Chinese market are now entering the market, and we need to study and understand them. And, of course, whether associated incidents are increasing, the severity and frequency of weather events around the world, be it flooding, wind storms, hail, tornadoes or wildfires, are increasing. These are all challenges that the insurance market and the renewable energy industry have to contend with. And at the same time, an influx of capacity, insurance capacity, is coming to the market. While this may complicate the insurance market for insurers already in the space, as mentioned, it is also a positive development given the challenges we face. It’s good that such an ability appears. And in my view it is emerging as a market capacity following leaders like Aviva who are more technical and capable of leading.

MARK: Well, obviously there is a huge amount going on in this market. So, if you had advice for a broker thinking about entering this market, what would it be?

VICKI: Partnership, I would say. I think it is very important that brokers, clients and insurers collaborate and share knowledge and experience. And at Aviva we have one of the largest underwriting and risk management teams in the London market. So please come and talk to us, talk and chat as soon as possible. We are very happy to support.

MARK: We have to leave it there. Vicki Kent, thank you. Thank you.

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