AXIS Insurance Services in the Greek Market Peter Fitsimmons - AVP - - PowerPoint PPT Presentation

AXIS Capital Holdings Limited, through its operating subsidiaries, is a leading provider of specialty lines insurance and reinsurance globally. 71 Fenchurch Street, London EC3M 4BS Tel: +44 (0) 20 7877 3800 www.axiscapital.com

Peter Fitsimmons - AVP

AXIS Insurance Services in the Greek Market

May 4th 2018

Table of Contents

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1. Introduction to AXIS and AXIS in the Greek Market 2. The Reality of Wind/Solar Accidents: Trends 2010 – 2016 3. Importance of Contingent Business Interruption 4. Independent Engineering Services 5. Conclusions and Questions

• 1. Introduction to AXIS and AXIS in the Greek

Market

AXIS Renewable Energy Insurance

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• Global Commercial Insurance Company, NYSE-listed
• 29 Offices in 11 countries, with RE team, based in Miami, New York, Singapore and

London

• Top 10 Lloyds of London Insurer

Gross Written Premiums 2017:

• $3.1Bn Insurance
• $2.4Bn Reinsurance

Financial Rating:

• S&P: A+ (Strong)
• AM Best: A+ (Superior)
• Insure 1,000+ Wind & Solar projects globally

Introduction to AXIS

AXIS Renewable Energy Insurance

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Capacity

• Maximum Line - $250m
• Lloyds - $100m
• Third Party Liability - $25m
• Lender Approved Wordings
• Leader in Wind, Solar and Battery Storage
• RE team, based in Miami, New York, Singapore and London
• Cradle-to-Grave Coverage – Marine Construction Operation
• Dedicated Claims Team
• Renewable Energy Engineering Services
• Construction All Risks/Operations All Risks

Introduction to AXIS Renewable Energy Team

Position in the Greek Market

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As of 1st September 2017, the Axis Renewable Energy Team partnered with AlphaPlus Insurance Brokers This partnership brings a reliable renewable energy expertise to the Greek Insurance

• market. This focus enables the following offerings to be made available through

AlphaPlus:

• A global perspective providing greater understanding and appetite for evolving

technologies, such as Battery Energy Storage Systems (BESS)

• A dedicated claims team working solely in Renewable Energy
• Renewable Energy focused wordings, often offering broader and clearer coverages

than standard property wordings, for example Contingent Business Interruption (CBI)

• Independent third party engineering services from engineers who have spent their

entire careers in the Renewable Energy Sector

• 2. The Reality of Wind/Solar Accidents:

Trends 2010 – 2016

2.1 The Reality of Wind Accidents:

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Trends 2013 – 2016 Wind

• USD 10m+
• USD 5m
• USD 1m
• USD 500k
• Infrequent
• Frequent
• Most Frequent

Fire/Collapse Lightning-Blades Transmission Line Machinery/Electrical Breakdown

2.2 The Reality of Solar Accidents:

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Trends 2013 – 2016 Solar

• Frequent
• Most Frequent

Windstorm Electronic Breakdown Hail Theft Grass Fire Flooding

• USD 10m+
• USD 5m
• USD 1m
• USD 250k

• 3. Importance of Contingent Business

Interruption

What is Contingent Business Interruption?

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Contingent Business Interruption (CBI) insurance is an extension to standard property insurance. It reimburses lost profits and extra expenses resulting from an interruption of business at the premises

• f a customer OR a supplier.

There are four situations in which this coverage is widely used:

• 1. When the insured depends on a single supplier or a few suppliers for

materials

• 2. When the insured depends on one or a few manufacturers or suppliers for

most of its merchandise

• 3. When the insured depends on one or a few recipient businesses to

purchase the bulk of the insured’s products

• 4. When the insured counts on a neighbouring business to help attract

customers, known as a leader property

CBI in Wind - Mexico

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In the summer of 2017, Mexico was hit by a 7.1 magnitude earthquake, causing over $2billion USD in damage:

• We received notifications form 4 wind farms
• No significant damage following the earthquake, but all of which fed into

the damaged Oaxaca Substation

• The substation will take 7 months to repair
• All projects are operating at reduced capacity until the utility substation

has returned to full capacity

• The 100% claim for all wind farms could be c. USD 20 million

CBI in Solar – Puerto Rico

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In the summer of 2017, hurricanes Irma, Jose and Maria, hit the Caribbean causing and estimated $40billion of damage. We insure a large PV plant in Puerto Rico:

• The grid was out of order for 7 months
• The PV project experienced minimal damage – about 3% of the panels
• The claim could be up to USD 20 million due to the unavailability of the

grid to accept any power

• If this had been a wind project then the costs would be higher as

temporary generation would be bought in to keep the turbines operational

• 4. Independent Engineering Services

Renewables Consulting Group (RCG)

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• RCG is a specialized expert services firm, focused solely on the global

renewable energy industry

• Offices in New York, Glasgow, London, Amsterdam and Taipei
• Provide Market Intelligence, Management Consulting and Technical

Advisory Services

• Provide us with Risk Engineering surveys in Wind (On and Offshore Wind),

Solar PV, Wave & Tidal and Battery Storage

• Work with us to provide thought leadership e.g. recent battery storage

report

• 5. Conclusions and Questions

Conclusions

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• Axis, AlphaPlus and RCG are now working together to provide a

renewable energy product, specifically for the Greek market.

• This product has the benefit of being adapted and tested around the world

and the flexibility to meet your demands and respond to unforeseen situations

• In addition to this product we have access to one of the best renewable

energy specific engineering firms to assist on risk surveys and more.

References

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CBI https://www.irmi.com/articles/expert-commentary/contingent-business-interruption-getting-all-the-facts Mexico Economic Damage https://www.insurancejournal.com/news/international/2017/09/29/465995.htm Mexico Earthquake 2017 https://en.wikipedia.org/wiki/2017_Central_Mexico_earthquake