GCube will use Renew Risk’s cutting-edge catastrophe risk models for offshore wind assets, which are based on advanced physics, data analytics and simulation techniques. The models will help GCube better understand and quantify the complex and interrelated factors that affect the risk and liability of offshore wind assets, such as extreme weather events, natural disasters, inter-connected component damage probabilities, operational failures and expected losses – allowing GCube to offer more tailored and competitive pricing.
Renew Risk's models are being integrated with Nasdaq Risk Modelling for Catastrophes, a SaaS platform providing access to a broad range of catastrophe risk models and services to (re)insurance firms, brokers and financial institutions. Incorporating Renew Risk onto Nasdaq’s platform will significantly enhance users’ ability to assess risk associated with offshore wind farms, estimate losses, compare project risk-return profiles, and efficiently allocate capital.
Renew Risk’s models provide more robust and comprehensive risk analysis for offshore wind assets than traditional methods, which typically use generic or onshore models. Such methods do not account for the specific characteristics of different regions or the nuances of offshore wind infrastructure, which can lead to suboptimal insurance pricing.
Instead, Renew Risk’s models are built from a ground up engineering approach and consider a broad range of factors that affect risk and liability, such as the location, age, size, power, and gearbox system of the turbines, the cost and availability of replacement parts and vessels, the downtime and reliability of the operations, and the Business Interruption (BI) losses. These cutting-edge models also offer comprehensive coverage of high-risk regions, encompassing Northeast US hurricanes, Taiwan earthquakes, and typhoons, as well as Japan earthquakes and typhoons.
The two collaborations demonstrate the value and potential of Renew Risk’s offshore wind catastrophe models.
Renew Risk’s models are operationally live and can also be used for other purposes like capacity planning, portfolio management, stress testing and event response.
“We are delighted to partner with Renew Risk” said Fraser McLachlan, CEO, GCube Insurance. “This partnership will enable us to enhance our offshore wind services by using Renew Risk’s pioneering catastrophe models. Renew Risk’s models will help us better understand and quantify the complex catastrophe risks of offshore wind assets, which will allow us to offer more tailored and competitive pricing.”
James Lay, Senior Director, Nasdaq, added that the extraordinary growth of the offshore wind industry demands an increasingly sophisticated insurance ecosystem to serve it and that this is driving a critical need for advanced models capable of accurately assessing risk.
“As the first models of their kind available in the Oasis format, integrating Renew Risk with Nasdaq’s platform will provide seamless access to the tools necessary to support the continued growth of the sector” Mr Lay said.
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