View from the Top: A renewable future

The environmental case for renewable energy is indisputable. As well as helping to reduce CO2 emissions, it protects biodiversity, provides greater independence and secures energy supply.

The business case is just as compelling. In a market where many insurers are struggling to achieve sustainable growth, the renewable energy sector represents an attractive opportunity for those companies with the right skills and expertise.

Denmark is at the forefront of the drive to a low carbon economy. It was responsible for constructing the world's first offshore wind farm, so it's no surprise that wind power accounts for 20% of the country's energy mix.

“The renewable energy sector represents an attractive opportunity for those companies with the right skills and expertise.”

RSA was involved in insuring that first wind plant in Denmark, and we have been building our offering in the sector ever since. It may be carbon free, but renewable energy is not risk free. As technology continues to develop, we will see ever bigger wind turbines and larger solar plants leading to new and emerging risks. The skills and experience of insurers will be crucial to ensure that these are effectively managed in order to support the next generation of renewable energy.

But it’s not all about risks. Renewable energy can also play a role in stimulating local economies and regenerating communities. Projects are often located in remote rural areas, miles offshore or in desert terrain. After the initial manufacturing and installation phase, they require ongoing maintenance and service and this creates a huge opportunity for employment.

“Insurers will be crucial to ensure these [emerging risks] are effectively managed.”

While an acceleration in the future development of renewable energy may raise many challenges and present new risks, the opportunities for the insurance industry are equally as exciting.

Mike Holiday-Williams
CEO, RSA Scandinavia