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Power and Utilities
Today’s utilities companies face significant and wide-ranging industry, emerging, and supply chain risks.
At Marsh, our industry practices offer specialised expertise in a number of industry sectors, and serve as our principal go-to-market strategy to clients across the UK and Ireland. We differentiate ourselves through a risk based, holistic client approach — delivering dedicated industry knowledge, expertise, insights, and solutions.
The result: a comprehensive understanding of the issues facing the industry, enabling us to design innovative risk solutions that aim to protect your balance sheet, optimise operations, increase stability, and control your total cost of risk.
Case Study: Wind Project
Background
We were approached by a client based in a foreign territory to provide insurance for a wind project with five separate power purchase agreements. The client also had other solar and wind assets based in locations with high natural catastrophe exposures, which had been subject to large claims, and were therefore facing significantly increased premiums and restricted coverage.
Solution
We leveraged our international expertise and local market knowledge and languages to design an insurancecprogramme which was appropriate for the assets, alongside meeting local regulatory requirements, and levels of protection required to satisfy all individual stakeholders.
Impact
Our client gained premium savings across all their assets, despite the loss record.
Case Study: Biomass Project
Background
Our client's project was a new biomass-fuelled combined heat and power facility in the UK, backed by European project financiers. Traditionally, delay in start-up (DSU) insurance cover, which is commonly taken out in large-scale construction projects, only provides indemnification for actual lost revenue during the indemnity period (the insured period of delay).
Solution
We developed a novel insurance solution in the market for construction DSU insurance.
Impact
Our solution breaks new ground by supplementing the traditional project insurances (construction all risks (CAR) and DSU) to protect the developer and funders against the risk of the project losing an entire future revenue stream. This was dependent on the project securing the benefit of the UK Government's Renewable Obligation Certificates (ROC) scheme by the statutory "cliff-edge" deadline for its closure.
Case Study: Risk Exposure
Background
Our client wished to undertake an assessment of their property damage and business interruption risk exposure to ensure their programme was fit for purpose and they had an assurance that the limits were appropriate to cover any potential loss the business could suffer.
Solution
We introduced a programme to assess loss scenarios across a range of distribution assets which helped identify and evaluate the exposures our client faced.
Impact
Our output helped inform and facilitate an effective insurance marketing exercise and our client benefitted from over GBP750,000 of savings plus enhancements in policy cover to ensure adequacy of cover in the future.
Case Study: Cyber Risk
Background
Our client had identified 1,300 cyber risks across their business. They had considered an insurance solution previously but wanted to fully understand how their existing cover would respond first.
Solution
Working closely with our client, a process of identifying loss scenario developments and quantification of those losses was undertaken. All policies were stress tested in order to identify coverage weaknesses and enhancements required in the future.
Impact
Cost was driven down and a placement with two towers of USD200 million of cover was placed in the market.
Case Study: Fire Damage
Background
Our client suffered major fire damage due to a severed oil line caused by a gas turbine error which damaged the entire hot gas path section, exhaust diffuser, compressor section, generator, and rotor. Their underwriters argued that substations were not covered and the settlement subsequently offered was significantly lower than sought.
Solution
Working closely with our client and the underwriter, we managed to secure a further USD5 million in relation to the under-insurance element of the over speed claim and acceptance that substations were covered.
Impact
This resulted in our client receiving 100% of their claim.