Sompo launches first onshore & offshore wind farm risk model
Sompo Japan Nipponkoa Insurance (SJNK), Sompo Risk Management & Health Care (SRMHC) and Sompo Canopius has launched what it claims to be the world’s first model for evaluating risks to onshore and offshore wind farms.
The model, created by the Sompo group companies in collaboration with the University of Tokyo, provides key pricing and cat modelling data for insuring the construction and operation of wind turbines. Taking into account perils such as wind, lightning, wave, and electrical and mechanical breakdown, the model is able to provide valuable risk insight to insurers as well as renewable energy companies.
Initially it will cater for risks in Japan, followed by the North Sea and Asia later in the year.
Interest in renewable energy continues to intensify, particularly in Japan following the Fukushima nuclear disaster, with the Japanese government projecting that wind power capacity will reach 10 m KW by 2030, according to Sompo. In addition to providing insurance, the industry has a crucial role to play in supporting the growth of this industry with risk mitigation services.
Hajime Sano, head of catastrophe analytics at SRMHC, said: We are extremely pleased to announce the world’s first risk evaluation model for wind farms. As wind farms expand, the potential for damage increases substantially, particularly with offshore wind farm reconstruction involving considerable specialist costs.
“This model will be of great value in diminishing and managing risk and supporting the safe expansion and operation of wind farms.”
Marek Shafer, head of catastrophe management at Sompo Canopius, added: “The quantitative evaluation of risks associated with wind farms is still in its infancy and the development of this model is an important step forward.
“Combining research from the University of Tokyo with the expertise of SRMHC, Sompo Canopius’s catastrophe risk modelling capabilities and SJNK’s claims data, the model offers significant potential to improve the safe construction and operation of our clients’ wind farms.”
