wave & tidal device insurance

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Wave and Tidal Device Insurance Bruce Stevenson Risk Management Ltd & Windsor Partners LLP September 2011

Panel Members Derek Skinner Director, Bruce Stevenson Risk Management Gary Bratt Technical Consultant, Bruce Stevenson Risk Management Oliver Litterick Account Executive/Broker, Windsor Partners LLP

Scottish Renewables: Marine Exhibition September 2011

Presentation Overview •

Brief overview of Bruce Stevenson Risk Management and Windsor Partners

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Summary of Insurance Market for Marine Renewables Today

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Appetite of Insurers and Underwriters

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General Discussion/ Questions

Scottish Renewables: Marine Exhibition September 2011

Bruce Stevenson Risk Management With 20 years working within the Renewable Energy sector we have gained an invaluable wealth of experience. We are a Leading Independent Insurance Broker with:     

Renewable Energy Knowledge Specialist and Technical Expertise Renewable Energy Relationships Local Service Commitment to the Renewable Energy Sector

Scottish Renewables: Marine Exhibition September 2011

Winsor Partners LLP London Based Insurance Broker with an extensive experience and expertise in placing insurance cover for Renewables within the London and Lloyds market. Strong relationship with Marine Renewable Underwriters.

Scottish Renewables: Marine Exhibition September 2011

The Situation Today Only Limited Cover Available • Material Damage Cover: Restricted Marine Perils or possibly All Risks of Physical Damage

• Public Liability :

up to £25m Limits of Indemnity

Scottish Renewables: Marine Exhibition September 2011

The Situation Today

No Cover Available • Breakdown • Business Interruption

•Defects •High deductibles/excesses

Scottish Renewables: Marine Exhibition September 2011

Premiums

High Premiums. Rates of 4% - 7% on value of device Liability - flat premiums and expensive

Scottish Renewables: Marine Exhibition September 2011

Capacity

• Insurers have suffered a number of significant losses worldwide • Unlikely to accept more than 15% share of a single device • 100% Cover requires a number of underwriters

Scottish Renewables: Marine Exhibition September 2011

Insurance Underwriters • • • • • • • •

Ascot Renewco Chaucer plc CNA Europe Gcube Underwriting Limited International Insurance Company of Hannover Ltd The Leviathan Facility RSA NMU

Scottish Renewables: Marine Exhibition September 2011

What is the Future

• Capacity • Appetite • EML • Premiums

Scottish Renewables: Marine Exhibition September 2011

Solution? Share information and experiences Facility with 5 – 7 Underwriters Agreed rates and cover

Spread risk = greater acceptability and lower premiums Willingness to provide breakdown insurance and loss of revenue Panel of consultants and agreed fee structure

Scottish Renewables: Marine Exhibition September 2011

Scottish Renewables: Marine Exhibition September 2011

Scottish Renewables: Marine Exhibition September 2011

Scottish Renewables: Marine Exhibition September 2011

Scottish Renewables: Marine Exhibition September 2011