QBE has launched insurance for renewable energy initiatives within Australia. 

Eligible projects include wind or solar energy generation and battery storage, and QBE also plans to include emerging technologies such as hydrogen.  

The new offer is the first in the market to offer coverage across a project’s full lifecycle, from construction to operation to decommissioning, the insurer says. 

QBE Australia Pacific MD Business Elliot Hill says renewable energy projects are often constructed in high-risk locations like flood plains due to their isolation. 

“Our goal is to point project developers to the specific risk factors they have that lead to a higher premium price and equip them with knowledge on how to mitigate these risks,” Mr Hill said.  

“If developers then make changes to minimise their risk profile, we can re-price according to their new lowered risk profile.” 

QBE says its underwriting is being adjusted to reflect a “rapidly changing energy mix”. As well as covering construction, intermittent operation, full operation, and decommissioning, the new policies support the upgrading of existing energy assets, such as transformer improvements.  

The offer is supported by an energy rating model developed by the AUSPAC Renewable Energy team, which is being deployed across QBE offices internationally. It provides accurate risk pricing and also enables tailored coverage according to each project’s risk profile, and also flexibility if the risk profile changes.  

QBE outlined the top five risks for brokers and renewable energy providers to consider as follows:  

Natural catastrophes: Solar projects are susceptible to hail, wind and flood, while wind farms can suffer from lightning strikes.  

“To help mitigate this risk, site selection needs to be carefully considered, and appropriate construction materials that can withstand known risks should be used,” QBE said. 

Technology advancement: There is often no data on how these technologies perform so risks or defects may not have yet been identified. “The latest technologies may carry different risk profiles, and therefore different premium price impacts, compared to more established technologies.”  

Supply chain delays: This may affect replacement times for warranty claims or insurance losses.  

"Developers may wish to negotiate replacement time in supply contracts to provide more certainty.” 

Contractor skills shortages: Poor workmanship or damage will require shutdown of the operating assets, a complete audit, or a major rectification project. 

"Engaging with an experienced contractor and ensuring adequate retention of project value until all issues are fixed may help reduce this risk,” QBE said. 

Inflation: The sum insured for projects may not be high enough to fully repair or replace damaged buildings or parts, and QBE says developers should regularly review their sum insureds with their brokers.