Aviva to fund offshore wind risk management framework project

By Rebecca Delaney

Jan 31 - (The Insurer) - UK insurer Aviva has partnered with the Supergen Offshore Renewable (ORE) Hub to fund a four-year PhD project at the University of Exeter to develop a risk management framework for offshore wind insurance programmes.

The research is focused on offshore wind construction and operations insurance programmes.

The rate of growth and innovation of offshore wind turbines has seen wind farms use different types of technology, some of which have limited data on construction and operational experience.

As a result, commercial insurance for offshore wind farms must regularly adapt their risk management approach to capture changing risk profiles, often using assumptions and historical trends.

The new framework developed under the PhD project will look to mitigate construction and operational risks associated with the current global fleet of offshore wind farms, as well as being adaptable for future projects using new technologies.

Aviva said this risk management approach will help it to continue evolving its underwriting strategy and decision-making process for the placement of offshore wind insurance programmes.

The research student will undertake a number of placements over the four-year course, including with Aviva Risk Management Solutions (ARMS), which is providing overall oversight of the project.

The project also includes a steering committee consisting of McGill & Partners and the Offshore Renewable Energy Catapult.

Matt Washington, managing director of global, corporate and specialty at Aviva, commented: “By funding this PhD project, we are not only supporting cutting-edge research but also enhancing our ability to manage risks in the offshore wind sector.

“This research has the potential to minimise risks for our customers and identify emerging technologies that will shape the future of offshore energy, making the transition to renewable energy easier and helping the UK get ready for the future.”

Michael Walker, partner for renewables, power and energy at McGill, said: “At McGill and Partners, we are excited to contribute to this project aimed at creating a more effective framework for risk interpretation for offshore wind construction and operations.

“We are proud to have a role guiding this important research which offers a unique opportunity to highlight the work of insurance risk management. This will help shape a more resilient and sustainable framework for the future of the industry.”