GCube Insurance, a prominent underwriter for renewable energy projects, is entering into a strategic partnership with Renew Risk, a leading Software-as-a-Service (SaaS) risk analytics provider.
This collaboration is set to bolster GCube’s capabilities in offshore wind risk analytics and modeling, with significant benefits for its offshore wind clients.
Under this partnership, GCube will leverage Renew Risk’s state-of-the-art catastrophe risk models specifically designed for offshore wind assets.
These models are based on advanced physics, data analytics, and simulation techniques, enabling GCube to gain a deeper understanding of the intricate and interconnected factors influencing the risk and liability of offshore wind assets.
These factors include extreme weather events, natural disasters, component damage probabilities, operational failures, and expected losses. By harnessing these cutting-edge models, GCube aims to offer its clients more personalised and competitive pricing.
Renew Risk’s models will be seamlessly integrated into Nasdaq’s Risk Modeling for Catastrophes, a SaaS platform offering access to a wide array of catastrophe risk models and services for (re)insurance firms, brokers, and financial institutions.
This integration will empower users to assess the risks associated with offshore wind farms more effectively, estimate potential losses, compare project risk-return profiles, and allocate capital efficiently.
Renew Risk’s groundbreaking models go beyond traditional methods, which often rely on generic or onshore models that fail to account for the unique characteristics of offshore wind assets in various regions.
Renew Risk’s models are engineered from the ground up, considering an extensive range of factors, including turbine characteristics (location, age, size, power, gearbox system), availability of replacement parts and vessels, operational downtime, reliability, and business interruption losses.
These models also provide comprehensive coverage of high-risk regions, including the Northeast US, Taiwan, and Japan, for events like hurricanes, earthquakes, and typhoons.
The collaborations between GCube, Renew Risk, and Nasdaq highlight the transformative potential of Renew Risk’s offshore wind catastrophe models.
These models are not only operationally live but can also be utilised for capacity planning, portfolio management, stress testing, and event response.
Fraser McLachlan, CEO of GCube Insurance, expressed his enthusiasm for the partnership, stating that it would enable the enhancement of their offshore wind services and the provision of more tailored and competitive pricing through Renew Risk’s pioneering catastrophe models.
James Lay, Senior Director at Nasdaq, emphasised the growing need for advanced risk assessment models in the rapidly expanding offshore wind industry.
He highlighted the significance of integrating Renew Risk’s innovative models into Nasdaq’s platform, which will support the sector’s continued growth.
Ashima Gupta, Co-Founder & CEO of Renew Risk, shared her excitement about the collaborations, highlighting the innovative nature of their catastrophe models based on advanced physics, data analytics, and simulation techniques.
These models will assist GCube in better evaluating and managing the intricate catastrophe risks associated with offshore wind assets, ultimately benefiting GCube’s esteemed clients, Gupta said.
