Power generation and distribution is experiencing a time of rapid development and opportunity that brings with it a range of new risks. The industry is seeing a technological revolution in the way that power generation and distribution is run.
From the use of more efficient renewable energy sources, drones to assess damage or repair on power lines, onsite 3D printing of power plant spare parts, as well as further independent and off grid power generation interlinking critical infrastructure.
This level of technological change brings with it a wide range of risks, including the threat of a cyber attack causing damage to the plant or even causing a costly business interruption.
Added to that, companies face emerging risks of new materials used for the latest power sources and complex third party business interruption claims with people buying and selling energy to the grid from thousands of sources. For over 20 years, JLT has been helping power clients manage their risk exposures.
WHAT WE DO
JLT's power team is made up of specialists dedicated to helping clients within the power generation industry throughout the entire
project life cycle, from the project planning stage through operation and out to the decommissioning phase.
Our team helps to forecast and foresee the challenges, which are difficult and often costly to reverse once the project is underway.
Each of our team members are handpicked for their specific area of expertise. They can cover every type of risk, for all areas of power generation asset ranging from traditional fossil fuel sources to nuclear and renewable energy.
Our specialists come from different backgrounds such as insurance, engineering, law and finance, we can therefore better understand risks from multiple stakeholder views.
What isn’t covered?
Coverage for losses caused by faulty design or manufacture is tightly defined and different levels of cover may be offered depending on the technology. This is not specific to power generation.
Our policy wording otherwise contains similar exclusions and coverage restrictions to those found in ‘mainstream’ construction and property wordings (e.g. those relating to war or radioactive contamination).
It should also be remembered that coverage under most insurance policies, including those within the power generations sector, is triggered by an event that causes physical loss or damage and, in the case of liability policies, also bodily injury.
We have comprehensive knowledge of the regulatory, financial, technological, environmental and geographic aspects of placing insurance. Our services extend to full reviews of policy wordings and placement structures as well as risk advice and risk engineering services
We have the ability to analyse large quantities of client data to produce meaningful insights to find the best programme in the market
As a global broker with local relationships, we understand how to navigate between cultural differences around the world
Clients will have access to our specialists 24/7
We strive to recruit the best talent and provide an environment that encourages innovation and creativity
Our approach to claims resolution is proactive. We are actively involved from first advice through to final settlement providing high quality technical claims services tailored to our clients requirements
We work as your advocates from day one, engaging collaboratively with key stakeholders to ensure indemnity is maximised under the policy.
Our client suffered an overspeed to their gas turbine which caused damage to the entire hot gas path section, exhaust diffuser, compressor section, generator and rotor. An oil line was severed and a small fire started that caused minimal damage within the turbine enclosure but major damage external to the machine.
The adjuster recommended a final settlement in the amount of USD 30 million net of deductible, however underwriters queried this amount wishing to apply average based on valuations performed by their consultants. They also argued that substations (not applicable to this loss) were not covered any damage that resulted from fire should be excluded. A settlement of USD 25 million was offered by underwriters.
Following numerous meetings and discussions with the underwriter, We managed to secure their agreement to a further USD 5 million in relation to the under insurance element of the over speed claim.
Subsequently, we received acceptance that substations were covered and a compromise was reached regarding the fire element of claims falling to this insured. This resulted in further payments to the reinsured in the amount of USD 1,153,125 which was 100% of the claim.
We were approached to provide insurances for a project consisting of five separate power purchase agreements making up the total size of the wind project. In addition, the client had other solar and wind assets which had been subject to large claims and were facing significantly increased premiums and restricted coverage. The projects were also based in areas with high natural catastrophe exposures.
This meant we had to consolidate the needs of different stakeholders with different risk profile records into a coherent placement strategy.
We designed an insurance programme which met the individual requirements of the assets and their stakeholders with the levels of insurance required to satisfy all individual stakeholders at competitive premiums. We were able to achieve premium savings for the client on all of their assets despite the loss record.
We also had the added complication of working with a client based in a foreign territory and local insurance regulatory requirements to meet. With the assistance of our local office we were able to apply international expertise into a local market whilst being diplomatic of local customs and language differences.
Our team is the largest construction insurance broker in the London market by premium volume placed, size of division and specialist claims handling capability.
Our team includes experts who work across the entire spectrum of construction risks. Our power specialists have over 100 years of combined experience, in the construction sector and, over the last five years, placed construction insurance for over 50,000 MWs of new generating capacity.
We understand the importance proactive claims support and timely resolution during construction, so it remains a core focus of our client service offering. Our integrated claims specialists sit within the division and are key members of our client service teams.
While we hope that our clients’ projects are delivered on time, in budget and without incident our claims technicians have a reputation for excellence developed through dealing with some of the largest and most complex claims in the power generation construction sector.
The power construction insurance industry can be a complex one, with a balance of large risks from civil engineering, to complex erection risks combined with technology risks. Often different insurers are specialists in only one of these areas. Having a broker who can navigate you through these markers will help you achieve the best programme for your project.
Our operational power team is considered one of the strongest in the insurance market and is responsible for the placement of significant premiums (>USD 1billion) into the international insurance market. The team has been involved in the design, placement and management of programs from independent power producers, portfolio generators and vertically integrated utilities.
We appreciate that while the inherent exposures in the power generating sector may have much in common, individual operating methods can often result in distinct and different risk impacts.
It’s why we spend time getting to know our clients and their unique challenges. It also governs the way we work with the market and our network to provide the most robust solutions. Our success is built on best practice and our insight around key issues.
We therefore build up a true understanding of an insured’s risk profile so that they can look to us for rigour in dealing with the markets and their wordings: purchasing only the cover they need and removing unnecessary and costly extensions. Ultimately, we know this approach works because our clients tell us so.
It’s a difference that runs through everything we do. It provides our clients with confidence in our risk solutions and offers them the flexibility and swift decision making that they would normally associate with a much smaller business, whilst benefiting from experience that can only come from being a market practice leader.
Power insurers are well versed with regard to all risks and loss potential of the power sector. Having a broker who can identify these risks will help you get the best terms from the insurance market.
We understand the success of any insurance programme is how it reacts in the event of a claim. Our in-house claims team has the experience, resources and industry knowledge to manage claims of any size or complexity.
Our claims team work is an integral part of our broking and servicing teams, as one unit for the maximum benefit of our clients. For any disputed claims and all property claims, we will work with you to achieve a satisfactory resolution. Other claims services can include:
Providing access to surveyors, lawyers and engineers
Advising on claims strategy to create a level playing field when dealing with your insurer
Investigating, measuring and preparing claims
Negotiating and settling claims
Intervening to prevent lengthy disputes and spiralling legal costs
Planning responses to potential major losses.
We also offers a wholly owned specialist claims consultancy practice, Echelon. The team is made up of specialist resources such as forensic accountants, surveyors, engineers or lawyers to provide impartial arbitration between parties.