Renewable energy sector grows

10 January 2008

WInd turbines
The Government has targeted 20% of the UK's energy coming from renewable sources by 2020.
GCube, the insurance entity spun out of Lloyd’s managing general agency WindPro, has opened its doors to business on both sides of the Atlantic.

GCube Underwriting Limited (GCUL) in London and GCube Insurance Services Inc. (GCUS) in California have begun providing up to $600m capacity per risk for a range of onshore and offshore renewable energy projects – wind power, biofuels, hydroelectric power, solar power, wave and tidal energy. In doing so, it becomes the world’s largest insurer of renewables.

Risks bound in both the UK and the US will be underwritten into a consortium of 13 Lloyd’s syndicates – the same group that backed WindPro, with the exception of Ascot which launched its own renewable business last year. The $600m capacity per project is $125m more than under the old WindPro regime and enables GCube to cover transit, construction and operational risks, right through to business interruption and general liability.

With GCUL regulated by the Financial Services Authority and GCUS by the Californian Department of Insurance, the operation will transact business from 36 Leadenhall Street, London and Newport Beach, California, and will eventually have additional offices in the US Midwest and East Coast.

According to Fraser McLachlan, Chief Executive of GCube and the former Executive Director of WindPro, only 3% of the UK’s total energy output comes from renewable sources. But the Government has targeted 20% of the country’s energy coming from renewable sources by 2020.

McLachlan said: “This puts GCube on the road to achieving some real progress in the installation of the renewable technologies. In global terms we expect wind to continue to grow at its current rate in excess of 20% as a credible and economically competitive provider of renewable energy. With newer technologies, such as solar, bio fuels and wave/tidal energy, we expect even larger growth targets in percentage terms.

”We are the only insurer really ready for the new technology on a global scale, whether it is on or offshore. We started in the renewable energy insurance business over 20 years ago and are well aware of the challenges insurers will face over the next few years.”

As part of the newly formed management team, Kevin Collins and Matthew Melville become Chief Operating Officer and Chief Underwriting Officer, respectively, of GCUL. In the US, Mike Bernay, already part of WindPro, will act as President of GCUS.


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Last updated on 10 Jan 2008