Photo by Dennis Schroeder / NREL
Nardac, the specialized energy and infrastructure broker and Managing General Agent (MGA), has launched a new facility to offer extra serious convective storm coverage (SCS) for development and activities of renewable energy project. Nardac will cover a maximum of $ 20 million in extra independent SCs for projects in the US as the first of various natural catastroph facilities planned in the course of 2025.
In addition to increasing claims, insurers have reduced the available capacity for SCS events. Insured persons left this with insufficient protection and has endangered the viability of new project development in SCS-blot areas.
Although SCS is often related to the hail risk for solar projects in the southern US, weather environments generally also include tornados, lightning strokes or powerful dereecho winds. Outside of Hagel, it is expected that tornados, lightning and extreme winds increasingly have an influence on the developments of renewable energy sources in states with growing bases of solar generation – such as Louisiana, Ohio, North Carolina and Kansas.
Nardac launched the new facility after work to secure extra SCS coverage for a 2-GW Solar Port Folio concentrated in Texas after a massive hail loss had exhausted his SCS limit with existing insurers. Saving more coverage for the portfolio emphasized that market needs have a facility with a stand -standing SCS capacity. With the new facility, Nardac can offer indications for coverage in 48 hours or less.
“The increasing incident percentage of natural catastrophe events, and in particular serious convective storms, leads to untenable losses for traditional insurance companies. This forces many insurers to reduce their coverage, “said Jatin Sharma, managing partner, Nardac. “This is an existential threat to the continuous structure of onshore-renewable energy sources in a number of American states.”
“By bringing a larger natural catastrophe capacity to the renewable energy market and connecting this facility directly to the specialist of Nardac’s Broking Knowledge and Track Record, the insured will benefit from critical extra coverage that protects operational projects and assets in development.”
“As climatic change continues to influence the development and activities of renewable energy, we look forward to leading power protection with creative new facilities that offer the market with the solutions needed to guarantee the energy transition.”
News item from Nardac Insurance Services