A new underwriting firm that will insure projects involving wind power, biofuels, hydroelectric power, solar power and tidal energy from offices in the United Kingdom and the United States, announced its launch today.

GCube Underwriting Limited (U.K.) and GCube Underwriting Services Inc. (U.S.) said it plans to provide comprehensive insurance services “to match an increased international appetite for renewable energy initiatives.”

The specialist insurance underwriter said it would be able to insure any renewable initiative up to $600 million for a single project, on- or off-shore. According to the firm, this would make it the largest provider of renewable insurance capacity in the world.

Authorized and regulated by the U.K. Financial Services Authority, GCube said it has offices in London and Newport Beach, Calif., and plans to open East Coast and Midwest offices as well.

In offering insurance for six renewable energy sectors, GCube said it would provide comprehensive “cradle to grave” coverage throughout a project lifecycle. The specialist coverage will include transit, construction and operational risks, right through to business interruption and general liability.

GCube said it will also provide a range of support services, including access to engineers, as well as a dedicated claims and loss adjustment unit targeted specifically at the renewable energy industry.

The company said the support services underline the in-depth sector expertise that exists within the business, and will ensure that customers keep a tight rein on the premiums and future policy costs.

GCube's chief executive officer, Fraser McLachlan, noted that while at present only 3 percent of the U.K.'s total energy output comes from renewable energy sources, “this is likely to undergo dramatic development in order to meet the government's ambitious 2020 target in which 20 percent of the country's energy comes from renewable sources.”

GCube's announcement mentioned that at the recent Bali Climate Conference, the European Union headed efforts to secure a new set of targets that would reduce emissions from developed nations by 25-to-40 percent by 2020.

“This puts GCube on the road to achieving some real progress in the installation of the renewable technologies,” said Mr. McLachlan.

“In global terms, we expect wind to continue to grow at its current rate in excess of 20 percent as a credible and economically competitive provider of renewable energy,” he added. “With newer technologies, such as solar, bio fuels and wave/tidal energy, we expect even larger growth targets in percentage terms.”

The GCube CEO said his firm is “the only insurer really ready for the new technology on a global scale, whether it is on- or off-shore. 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.”

In addition to Mr. McLachlan, GCube management includes Kevin Collins as chief operating officer and Matthew Melville as chief underwriting officer. GCube said those executives had been involved in establishing WindPro, a wind energy underwriter that is a key part of the new entity.

Special Reports /

Underwriter Launched For Renewable Energy

Related Stories

Recommended For You