Renewable energy projects insurance stressed

STAFF REPORT KHI: Managements of various renewable energy projects have been urged to involve insurance professionals at an early stage of the due diligence process in order to avoid unforeseen losses at a later phase.

This advice was given by speakers at a held one-day seminar on “Renewable Energy: Risk Management and Insurance Solutions” recently organised by the Karachi Insurance Institute, the speakers highlighted key challenges associated with managing risks in the field of renewable energy.

“Insurers can provide project lenders with a seamless cradle-to-grave, principal/owner-controlled insurance programme,” said Asif Arif, who serves as commissioner of insurance at the Securities and Exchange Commission of Pakistan (SECP), while addressing the audience.

He observed that many project lenders are reluctant to sponsor projects, which are unlikely to have cradle-to-grave cover,” he observed.

He said such programmes include construction insurance, marine insurance, including delay in start-up/advanced loss of profits and third-party risk.

Delivering a joint presentation on underwriting and engineering assessment of wind farms and solar plants, insurance professionals Alessandro Cerase and Mark N Quinn asked project managers to get those underwriters on board who are able to spread the risk and have some relevant past experience.

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