Aviva enhances sustainability commitment with new offshore wind market offering

Insurer Aviva has today (16 January 2023) extended its renewable energy insurance offering into the offshore wind market.

Aviva’s shift to renewable energy followed its exit from the London market for insurance of standalone operational fossil fuel power generation in 2019.

Its refreshed climate friendly portfolio now encompasses onshore wind, solar power, electric vehicle charging points and battery energy storage systems (BESS).

Aviva, as part of the move, is offering construction all-risks and operational risks cover in offshore wind.

Its first risk insured under the new extension is in the North Sea.

Adam Winslow, chief executive of Aviva UK and Ireland General Insurance, said: “Aviva has pledged to achieve net zero by 2040 and in November we set out our commitment to help support the UK to become the most climate-ready large economy by 2030.

”Supporting our growing renewable energy industry, both on and offshore, is a critical part of achieving that ambition.”

Sustainable opportunity

Aviva’s announcement comes after the UK minister for energy and climate Graham Stuart signed an agreement on renewable energy cooperation with EU and North Seas countries (December 2022) – this is expected to support the UK’s targets to increase offshore wind fivefold to 50GW by 2030, as well as deliver 18GW of electricity interconnector capacity – up from today’s levels of 8.4 GW.

Furthermore, in December 2022, the Irish government issued Maritime Area Consent (MACs) to the first phase of seven offshore renewable energy projects.

The MAC, introduced under the Maritime Area Planning Act 2021, is the new state consent process to regulate the use of Ireland’s maritime area.

Winslow added: “With more offshore wind projects coming on-stream all the time and many others in the planning, development and construction phases, this is a growth area and we look forward to bringing our expertise and experience to bear in this exciting space.”

In support of its renewables proposition, Aviva is looking to expand its underwriting and risk management team. It has also developed its own standalone policy wording for insuring BESS.