“GCube, the insurance entity spun out of Lloyd’s managing general agency WindPro, has opened its doors to business on both sides of the Atlantic,” notes a bulletin on the Lloyd’s web site (www.lloyds.com).
“GCube Underwriting Limited (GCUL) in London and GCube Insurance Services Inc. (GCUS) in California have begun providing up to $600 million capacity per risk for a range of onshore and offshore renewable energy projects – wind power, biofuels, hydroelectric power, solar power, wave and tidal energy. In doing so, it becomes the world’s largest insurer of renewables.”
Lloyd’s also notes: “Risks bound in both the UK and the US will be underwritten into a consortium of 13 Lloyd’s syndicates – the same group that backed WindPro, with the exception of Ascot which launched its own renewable business last year. The $600 million capacity per project is $125 million more than under the old WindPro regime and enables GCube to cover transit, construction and operational risks, right through to business interruption and general liability.
With GCUL regulated by the Financial Services Authority and GCUS by the California Department of Insurance, the operation will transact business from 36 Leadenhall Street, London and Newport Beach, California, and will eventually have additional offices in the US Midwest and East Coast.”
GCube’s Chief Executive and the former Executive Director of WindPro, Fraser McLachlan, noted that currently only three percent of the UK’s total energy output comes from renewable sources. However, the Government has targeted 20 percent of the country’s energy coming from renewable sources by 2020. “This puts GCube on the road to achieving some real progress in the installation of the renewable technologies. 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. With newer technologies, such as solar, bio fuels and wave/tidal energy, we expect even larger growth targets in percentage terms.”
He added: “We are the only insurer really ready for the new technology on a global scale, whether it is on or offshore. 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.”
As part of the newly formed management team, Kevin Collins and Matthew Melville become Chief Operating Officer and Chief Underwriting Officer, respectively, of GCUL. In the US, Mike Bernay, already part of WindPro, will act as President of GCUS.
Source: Lloyd’s
Topics California Trends USA Excess Surplus Energy Lloyd's
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