Lloyd’s has launched a new renewable energy consortium, to respond to the growing needs of the Asia-Pacific region and supporting countries, as they transition to greener energy solutions.
Developed by the Lloyd’s Asia platform, the consortium pools underwriting expertise and capacity among the participating syndicates for renewable energy risks and is positioned to capitalize on the growth opportunities seen in this sector, such as onshore construction, as well as the operational risks of solar and wind energy projects.
The new consortium has been developed by Chaucer, Markel, and Munich Re Syndicate Ltd (MRSL) and has a maximum working capacity of US$100 million per project.
The renewable energy sector has experienced considerable growth in Asia over the past decade with solar and wind power expanding rapidly and major countries in the region investing in renewable energy. These countries include India, Japan, Vietnam, Korea, and China as the world’s largest producer.
The Association of Southeast Asian Nations (Asean) has set an aspirational regional renewable energy target to derive 23% of its total primary energy supply from renewables by 2025, said Lloyd’s, quoting the International Renewable Energy Agency.
It is expected that Asia Pacific will continue to outperform other regions as a market for the investment and development in renewable energy over the coming decade with capacity predicted to increase by up to 2 terawatts by 2030, according to Boston Consulting Group’s report “Riding the Renewables Wave in Asia-Pacific”.
“Alternative energy sources are critical in achieving the successful global transition to a low carbon economy. The Renewable Energy Consortium at Lloyd’s brings together expertise from leading businesses on our platform in Singapore to provide insurance solutions that will allow us to play a greater role in enabling the development of renewable energy projects in Asia,” said Pavlos Spyropoulos, country manager, Singapore and CEO, Lloyd’s Asia.
“Chaucer is delighted to work with Markel and MRSL to bring our new Renewable Energy Consortium to the Lloyd’s Asia platform. By combining our expertise and capacity, we are able to offer a truly unique solution to the market; one that actively supports the pursuit of greener, more sustainable energy,” commented Margaret To, chief executive officer of Chaucer’s Singapore office.
Tom Baker, Head of Renewable Energy, Markel, said: “We at Markel are very pleased to partner with established and experienced Singapore markets to further develop insurance solutions for the Asia renewable energy industry. By pooling our regional expertise and capacity, and combining it with our international renewables experience, we believe we can offer a compelling product offering to clients in the region.”
“We are delighted to be part of the consortium and look forward to playing our part in supporting green energy initiatives across Asia Pacific,” according to Tim Lee, Energy and Engineering underwriter, Munich Re Syndicate Singapore. “This platform enables us to step up our push towards a more diversified energy portfolio and support clients who are doing the same, whilst cultivating new, and further strengthening existing relationships.”
