Aviva enters rising offshore wind insurance coverage market – InsuranceNewsNet

Aviva has reaffirmed its dedication to sustainability by extending its renewable vitality insurance coverage providing into the rising offshore wind market.

The insurer – the primary worldwide to set a goal of reaching Web Zero by 2040¹ – exited the London Marketplace for insurance coverage of standalone operational fossil gas energy era in 2019 and now focusses on renewable vitality. This method helps the UK’s transition to turning into climate-ready².

Its portfolio in renewable vitality encompasses onshore wind, solar energy, EV charging factors and battery vitality storage techniques (BESS), and is now greater than 200% of the dimensions of the fossil gas guide it exited, overlaying sufficient renewable vitality to offset 31.5 million tonnes of CO2 yearly, the carbon equal of driving 96bn miles³.

Demonstrating its dedication to inexperienced vitality belongings, Aviva is already a number one supplier of insurance coverage for renewable vitality within the London Market with an ambition to turn out to be the primary insurer of renewable vitality within the UK by 2027. Aviva’s entrance into the offshore wind market extends its underwriting urge for food and danger capabilities, and it has already insured its first danger within the North Sea.

Aviva is providing development all-risks and operational dangers cowl in offshore wind as a comply with market, focussing on massive renewable vitality shoppers and initiatives within the UK, US and Europe, working with skilled brokers and following recognised leaders.

The insurer will probably be supporting current shoppers as they transfer into offshore wind with protection aimed toward windfarm builders, homeowners and operators.

Aviva has pledged to realize Web Zero by 2040 and in November we set out our dedication to assist help the UK to turn out to be essentially the most climate-ready massive financial system by 2030². Supporting our rising renewable vitality trade, each on and offshore, is a vital a part of reaching that ambition.

Aviva’s transfer comes as 108GW⁴ of recent offshore wind initiatives are proposed for the UK and Europe by 2030, with seven new initiatives slated for the UK alone throughout 2023⁵.

Adam Winslow, CEO of Aviva UK & Eire Basic Insurance coverage, mentioned: “Aviva has a robust repute as a lead insurer in onshore renewables and we all know there may be robust demand in offshore as we see this market quickly evolve.

“Aviva has pledged to realize Web Zero by 2040 and in November we set out our dedication to assist help the UK to turn out to be essentially the most climate-ready massive financial system by 2030². Supporting our rising renewable vitality trade, each on and offshore, is a vital a part of reaching that ambition.

“With extra offshore wind initiatives coming on-stream on a regular basis and lots of others within the planning, growth and development phases, it is a progress space and we look ahead to bringing our experience and expertise to bear on this thrilling area.”

Aviva has additional strengthened its place within the renewables market, stepping up its involvement in BESS.

Batteries permit electrical energy from intermittent renewable vitality sources, comparable to photo voltaic or wind, to be saved after which launched as wanted and have a significant position to play within the financial system’s transition from fossil fuels to renewables.

Aviva has a few years’ expertise in insuring BESS however has now developed its personal stand-alone coverage wording for this know-how.

The insurer can be seeking to increase its underwriting and danger administration staff in help of its renewables proposition.

The rationale for Aviva’s transfer away from carbon-intensive industries is printed in its ESG Baseline Underwriting Assertion, which specifies the dangers that it’ll now not insure, together with:

As an investor, Aviva has been concerned in offshore wind initiatives for quite a few years. In 2018 it supplied £400m of financing to assist fund the development of Hornsea One, off the Yorkshire coast, which may energy multiple million houses with inexperienced electrical energy.

Newer investments embody East Anglia One, off the Suffolk coast, which has capability for powering greater than 600,000 houses⁶.

Aviva acquired validation of its science-based targets following approval from the Science Primarily based Targets initiative (SBTi). The approval of the targets, aligned to a 1.5°C pathway for operations, provide chain and investments, are a key milestone in Aviva’s journey to turn out to be a Web Zero firm by 2040. Extra data will be discovered right here.

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Sources and references

_{1 Whereas we’re working in the direction of our sustainability ambitions, we acknowledge that we’ve relationships with companies and current belongings which may be related to vital emissions. Extra data will be discovered at https://www.aviva.com/sustainability/local weather/.}

_{2 In November, Aviva printed its Local weather-Prepared Index to offer a easy measure of how influential international locations (G7 and Eire) are progressing on important local weather mitigation, resilience and adaptation actions.}

_{3 In keeping with the ONS, a household automobile emits roughly 328 grams of CO2 per mile. Subsequently, 1 tonne of carbon is the equal to three,048.78 miles. 3,048.78 miles multiplied by 31,500,000 tonnes offset = 96,036,585,365.}

_{4 International Wind Power Council, 2022 Offshore Report}

_{5 The Crown Property, Offshore Wind Tasks}

_{6 Scottish Energy Renewables, East Anglia One}