Old Equipment Causing New Problems for Insurers

Insurers are getting a front-row seat in learning the risks that come from aging renewable energy-producing equipment, says an industry expert.

The last 15 years have seen a spark in growth in the area of renewable energy development, particularly in wind and solar.

But, similar to the cars we drive, these machines are reaching the point in their lives where they don’t run like they used to, creating claims for the insurance industry, according to Darren Tasker, head of energy and construction in Canada for Allianz Global Corporate & Specialty.

‘Renewable energy, to no one’s surprise, has been growing,’ he told Canadian Underwriter. ‘It’s been a focus for both clients and governments — and even insurers and brokers — who are trying to get more green and fall in line with the Paris Agreement.’

The agreement, signed in 2016 by 191 members of the United Nations Framework Convention on Climate Change, outlines that each country must determine, plan, and regularly report on the contribution that it has taken to mitigate global warming.