Renew Risk launches offshore windstorm models for Europe

Renew Risk has launched windstorm models for offshore wind farms in the UK, Ireland and wider Europe. It describes them as the first catastrophe models in those markets built specifically for offshore wind assets.

The new UK & Ireland Windstorm Model and European Windstorm Model are aimed at insurers, reinsurers and brokers assessing storm risk for offshore wind projects. They use offshore wind farm data rather than the onshore proxy data often used to estimate losses at sea.

The launch comes as offshore wind projects in Europe grow in size and move into deeper waters. Turbines now reach 160 to 230 metres and face a changing storm environment, making historical data less useful for pricing risk.

The models incorporate at-sea wind-speed measurements, extreme wave impacts and asset-level information on turbines, cables and substations. They are intended to give insurers a broader view of exposure across European offshore wind basins, including the Atlantic and the Baltic.

The products also account for the cost of post-event repair and replacement in offshore settings. Mobilising specialist vessels can cost more than USD $10 million before repair work even begins, an expense that may be missed when offshore losses are assessed using methods based on onshore assets.

The tools are designed not only for insurers and reinsurers, but also for banks, developers and planners involved in renewable energy portfolios. They include forward-looking risk analysis for both existing and planned sites through to 2032.

Insurance conditions have tightened in parts of the offshore wind market as underwriters contend with limited data on asset performance in extreme weather. Some providers have restricted capacity or raised premiums because of uncertainty over potential losses.

Dr Joshua Macabuag OBE outlined the company's view of the issue.

"At present, predictions within the offshore wind market are a source of inaccuracy. Many models still rely on proxy data to estimate offshore losses, a limitation that can materially distort risk pricing. The past is not a reliable guide to future risk. By capturing the asset-level details of offshore wind farms through an engineering-led approach, our models give insurers the clarity to price risk accurately and deploy capacity with confidence, unlocking the next phase of growth in Europe's offshore wind sector," said Dr Joshua Macabuag OBE, Co-Founder & CEO of Renew Risk.

Aviva Input

Aviva was involved in the development process over the past year, with staff from its Exposure Management, Offshore Wind Underwriting and Risk Engineering teams providing consultation on the models. That work helped refine the treatment of natural catastrophe exposure across offshore wind assets in the UK and Europe.

Vicky Kent, Head of Renewable Energy and Engineering at Aviva, explained how the insurer expects to use the new tools.

"As a lead market, Aviva is committed to advancing technical excellence and delivering solutions that give insurers, our clients and brokers greater clarity and confidence in managing offshore wind risk. This collaboration reflects our focus on innovation, strong partnerships and supporting the long-term resilience and insurability of the offshore wind industry. This new model provides clearer, more accurate insight into offshore wind risks, empowering us to better manage aggregation, enhance underwriting discipline and ultimately deploy greater capacity to support clients, brokers and the global energy transition," said Vicky Kent, Head of Renewable Energy and Engineering at Aviva.

Market Growth

Renew Risk was founded in 2021 and has raised USD $4.7 million in seed funding at a USD $16 million valuation. The company focuses on risk analytics for renewable energy assets and has built catastrophe models for other offshore wind markets, including Taiwan, Japan and the US.

Its model development cycle takes about nine months, compared with more than three years for some traditional providers. The products have also been developed and validated with early market adopters to reflect underwriting and risk management requirements.

The latest launch expands Renew Risk's offering in Europe at a time when insurers are under pressure to assess the exposure of larger offshore assets with greater precision. The company works with insurers and other market participants, including Aviva, on underwriting and risk management across renewable portfolios.

Its broader product plans include a severe convective storm risk model for solar energy in the US, adding to coverage across renewable energy markets in several regions. The European offshore wind models are intended to improve risk pricing as weather conditions and asset design continue to change.