AXIS Insurance Services in the Greek Market Peter Fitsimmons - AVP May 4 th 2018 AXIS Capital Holdings Limited, through its operating subsidiaries, is a leading provider of specialty lines insurance and reinsurance globally. 71 Fenchurch Street, London EC3M 4BS Tel: +44 (0) 20 7877 3800 www.axiscapital.com
Table of Contents 1. Introduction to AXIS and AXIS in the Greek Market 2. The Reality of Wind/Solar Accidents: Trends 2010 – 2016 3. Importance of Contingent Business Interruption 4. Independent Engineering Services 5. Conclusions and Questions 2
1. Introduction to AXIS and AXIS in the Greek Market
AXIS Renewable Energy Insurance Introduction to AXIS Global Commercial Insurance Company, NYSE-listed • 29 Offices in 11 countries, with RE team, based in Miami, New York, Singapore and • London Top 10 Lloyds of London Insurer • Gross Written Premiums 2017: $3.1Bn Insurance • $2.4Bn Reinsurance • Financial Rating: S&P: A+ (Strong) • AM Best: A+ (Superior) • Insure 1,000+ Wind & Solar projects globally • 4
AXIS Renewable Energy Insurance Introduction to AXIS Renewable Energy Team Capacity Maximum Line - $250m • Lloyds - $100m • Third Party Liability - $25m • Lender Approved Wordings • Leader in Wind, Solar and Battery Storage • RE team, based in Miami, New York, Singapore and London • Cradle-to-Grave Coverage – Marine Construction Operation • Dedicated Claims Team • Renewable Energy Engineering Services • Construction All Risks/Operations All Risks • 5
Position in the Greek Market As of 1 st September 2017, the Axis Renewable Energy Team partnered with AlphaPlus Insurance Brokers This partnership brings a reliable renewable energy expertise to the Greek Insurance market. This focus enables the following offerings to be made available through AlphaPlus: A global perspective providing greater understanding and appetite for evolving • technologies, such as Battery Energy Storage Systems (BESS) A dedicated claims team working solely in Renewable Energy • Renewable Energy focused wordings, often offering broader and clearer coverages • than standard property wordings, for example Contingent Business Interruption (CBI) Independent third party engineering services from engineers who have spent their • entire careers in the Renewable Energy Sector 6
2. The Reality of Wind/Solar Accidents: Trends 2010 – 2016
2.1 The Reality of Wind Accidents: Trends 2013 – 2016 Wind • USD 10m+ Fire/Collapse • USD 5m Transmission Line • USD 1m • USD 500k Lightning-Blades Machinery/Electrical Breakdown • Infrequent • Frequent • Most Frequent 8
2.2 The Reality of Solar Accidents: Trends 2013 – 2016 Solar • USD 10m+ Windstorm • USD 5m Flooding Hail • USD 1m Grass Fire • USD 250k Electronic Breakdown Theft • Frequent • Most Frequent 9
3. Importance of Contingent Business Interruption
What is Contingent Business Interruption? Contingent Business Interruption (CBI) insurance is an extension to standard property insurance. It reimburses lost profits and extra expenses resulting from an interruption of business at the premises of a customer OR a supplier. There are four situations in which this coverage is widely used: 1. When the insured depends on a single supplier or a few suppliers for materials 2. When the insured depends on one or a few manufacturers or suppliers for most of its merchandise 3. When the insured depends on one or a few recipient businesses to purchase the bulk of the insured’s products 4. When the insured counts on a neighbouring business to help attract customers, known as a leader property 11
CBI in Wind - Mexico In the summer of 2017, Mexico was hit by a 7.1 magnitude earthquake, causing over $2billion USD in damage: We received notifications form 4 wind farms • No significant damage following the earthquake, but all of which fed into • the damaged Oaxaca Substation The substation will take 7 months to repair • All projects are operating at reduced capacity until the utility substation • has returned to full capacity The 100% claim for all wind farms could be c. USD 20 million • 12
CBI in Solar – Puerto Rico In the summer of 2017, hurricanes Irma, Jose and Maria, hit the Caribbean causing and estimated $40billion of damage. We insure a large PV plant in Puerto Rico: The grid was out of order for 7 months • The PV project experienced minimal damage – about 3% of the panels • The claim could be up to USD 20 million due to the unavailability of the • grid to accept any power If this had been a wind project then the costs would be higher as • temporary generation would be bought in to keep the turbines operational 13
4. Independent Engineering Services
Renewables Consulting Group (RCG) RCG is a specialized expert services firm, focused solely on the global • renewable energy industry Offices in New York, Glasgow, London, Amsterdam and Taipei • Provide Market Intelligence, Management Consulting and Technical • Advisory Services Provide us with Risk Engineering surveys in Wind (On and Offshore Wind), • Solar PV, Wave & Tidal and Battery Storage Work with us to provide thought leadership e.g. recent battery storage • report 15
5. Conclusions and Questions
Conclusions Axis, AlphaPlus and RCG are now working together to provide a • renewable energy product, specifically for the Greek market. This product has the benefit of being adapted and tested around the world • and the flexibility to meet your demands and respond to unforeseen situations In addition to this product we have access to one of the best renewable • energy specific engineering firms to assist on risk surveys and more. 17
References CBI https://www.irmi.com/articles/expert-commentary/contingent-business-interruption-getting-all-the-facts Mexico Economic Damage https://www.insurancejournal.com/news/international/2017/09/29/465995.htm Mexico Earthquake 2017 https://en.wikipedia.org/wiki/2017_Central_Mexico_earthquake 18
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