Underwriters Who Thought They Were Going to Make Money In Alternative Energy Are Getting Educated

Alternative energy insurers are finding that frequency and severity in solar and wind farm losses are greater than they ever imagined.

Four or five years back, maybe more, a host of insurers were keen to get into the alternative energy space. The risks were seen as relatively benign, capacity was ample and rates were low.

Capacity is still there, but a lot else has changed.

The windstorms that ravaged the Caribbean in late 2017 and 2018 produced staggering losses. In one instance, Hurricane Maria obliterated an entire onshore wind farm in Puerto Rico.

As Hurricane Florence flooding raged in North Carolina, insurers found to their dismay that they backed millions in insured values in solar installations; they paid heavily.