Insurance Products that Promote Renewable Energy
With Japan’s Renewable Electric Energy Feed-In-Tariff system starting to operate in July 2012, and a growing number of companies and other entities have been participating in renewable energy projects. For entrants into the renewable energy electricity market, we offer insurance to cover emergencies as well as risk analysis services for the project facilities’ site environments.
●Electricity Revenues Compensation Rider for Photovoltaic Power Generation Businesses
Sompo Japan Nipponkoa has developed an “Electricity Revenues Compensation Rider” to compensate for reduced business profits, considering the features of each project, based on situations associated with a reduction in electricity revenues—having calculated the projected revenues from electricity sales based on per-month and per-site data on hours of sunlight published by the New Energy and Industrial Technology Development Organization (NEDO). If a photovoltaic power generation system suffers damage due to a fire, natural disasters or other cause, the rider reduces the risk for the photovoltaic power generation business by compensating the owner for the reduction in business profits if the project’s planned electricity generation is not achieved. Through this product, we are working to encourage and promote renewable energy businesses.
●Fire Insurance for Wind Power Companies: Special Clause Covers Costs to Prevent Recurrence of Accidents
Sompo Japan Nipponkoa offers fire insurance for wind power companies with a rider that covers costs for actions to prevent accidents from recurring. For wind power companies, if accidents occur, the losses can tend to be expensive, and similar accidents are likely to recur. Thus, it is important for the management of wind power companies to identify the causes of an accident, and take measures to prevent recurrence. To address these issues, Sompo Risk Management & Health Care is supporting the stable management of wind power companies by developing this rider, which incorporates our accident recurrence prevention knowhow, to provide insurance and risk management services.
●Property and Casualty Insurance for Offshore Wind Power Companies
For offshore wind power projects, insurance coverage was arranged separately for the construction process and project operations after completion. But from the perspective of preventing gaps in insurance coverage and improving the efficiency of project management, many businesses were asking for unified insurance. In response, Sompo Japan Nipponkoa now offers insurance in the event of the occurrence of damage to offshore wind power facilities due to unforeseen or sudden accidents during facility construction and operations.
Also, Sompo Canopius has established a special in-house department and in Europe it offers property and casualty insurance for offshore wind power generation companies. The company shares their knowhow across the Group that has been developed in the European market which has some of the world’s leading underwriting techniques in the areas of property and casualty insurance for offshore wind power generation companies. We will conduct insurance underwriting that more closely matches risk in Japan as well.
●Risk Diagnosis Services for Renewable Energy
Since September 2012, Sompo Risk Management & Health Care has been offering risk diagnosis services for renewable energy. These services make use of knowledge accumulated through our risk analysis services relating to natural disasters such as earthquakes, flooding, and lightning strikes, as well as the development of risk maps. The services aim for a stable electricity supply from renewable energy, which has a low environmental impact, and involve analysis and diagnosis of site risks for renewable energy facilities such as photovoltaic and wind power electricity generation facilities.
●Consulting on Fire and Crime Risk for Mega Solar Installations
Since March 2013 Sompo Risk Management & Health Care has been offering risk consulting services relating to fire and crime prevention for mega solar power plants, in partnership with Sohgo Security Services Co.
●Risk Diagnosis Services for Wind Power Businesses at the Planning Stage
Sompo Risk Management & Health Care analyzes and grades various risks during the operation of both land-based and offshore wind power operations when they are at the planning stage. These services are aimed at reducing the potential risks of projects by encouraging the operators to take steps to reduce risks based on assessments, thereby reducing the amount of risk exposure before starting the projects.
●Risk Inspections and Diagnosis Services for Wind Power Facilities in Operation
Sompo Risk Management & Health Care selects turbines at power generation sites that have a high probability of major accidents or breakdowns, then conducts third-party inspections and diagnosis of business risk. These are considered to be detailed inspections of critical risks.
●Development of Risk Assessment Model for Wind Power Facilities
Sompo Risk Management & Health Care has developed a risk assessment model for wind power facilities. Identifying the risk of electrical or mechanical breakdowns and accidents due to natural disasters and other factors using the risk assessment model enables us to quantitatively ascertain the risk of wind power projects and calculate the appropriate insurance premiums. We will further develop our services that use the risk assessment model and contribute to the spread of wind power.
●Financial Impact Analysis Service for Wind Power Projects
Sompo Risk Management & Health Care offers a service for wind power projects that evaluates the probability of losses occurring due to accidents from natural disasters and typical breakdowns, as well as losses due to a halt of operations when a breakdown or accident occurs, and then quantitatively evaluates the impacts of identified risks on the cash flows of business plans.
●Second Opinion Service for Wind Power Companies
Sompo Japan Nipponkoa and Sompo Risk Management & Health Care started offering a second opinion service in November 2016 for wind power companies that have purchased a fire insurance policy from Sompo Japan Nipponkoa. Through this service, we offer advice on how to handle various types of trouble that could occur in operations and maintenance. When consulted on wind power operations and maintenance, Sompo Risk Management & Health Care compiles advice from wind power maintenance companies, experienced engineers and experts, and then provides it to the client.