Energy and insurance industries must move from ‘payout to partnership’

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and clear energy demand modelling,” said Mike Gosselin, executive director and chief underwriting officer, AXA XL’s UK & Lloyd’s division.Insurance has become increasingly important for energy providers in recent years due to the complex nature of the energy transition and new emerging threats to the industry.Large energy projects with huge upfront costs require insurance to mitigate significant financial risks associated with potential damages and delays, as well as problems during construction and operation. The necessity for energy insurance was highlighted in May 2019, when a relatively short-lived but severe hailstorm in western Texas damaged more than 400,000 solar panels at Midway solar farm, resulting in losses of more than $70m.Meanwhile, according to the 2024 European Union Agency for Cybersecurity Threat Landscape Report, the energy sector was the tenth most targeted sector by cyberattacks, leading to business interruption, extortion and data breaches.Recent analysis from Marsh Commercial, a group of small business insurance specialists within global brokerage Marsh, also cited protecting renewable energy providers against cyber threats as an increasingly important area of business.And one way to reduce claims is “moving from payout to partnership, working more closely with our clients to determine what they need,” Gosselin noted.Swiss Re, a global provider of reinsurance and insurance, has previously pointed to the use of "tailored underwriting" during an energy project’s construction phase as an example of increased partnership, incorporating "data gathered from previous experience to help balance out uncertainties".It added that with a with a "unique perspective on the risks involved, the energy industry can share insights to inform new projects, helping address risks and volatility without sharing proprietary information".Gosselin said that in general terms “insurance is also a really good way to provide stability for longer term investments [and] the next shock to the energy industry won’t necessary come from falling oil prices, but from our failure to adapt”.But for some of the big players in the energy industry, he added, “insurance is still an afterthought”.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,279.75 +7.75 (+0.12%)Dow Futures44,577.00 +65.00 (+0.15%)Nasdaq Futures22,920.75 +24.00 (+0.10%)Russell 2000 Futures2,244.40 -0.70 (-0.03%)VIX16.35 -0.46 (-2.74%)Gold3,303.00 -13.90 (-0.42%)PortfolioSign in to access your portfolioSign inTop gainersQS QuantumScape Corporation 8.18 +1.17 (+16.69%)PGNY Progyny, Inc. 24.27 +2.82 (+13.15%)NEGG Newegg Commerce, Inc. 18.71 +2.14 (+12.91%)SOUN SoundHound AI, Inc. 12.71 +1.33 (+11.69%)SM SM Energy Company 27.83 +2.49 (+9.83%)Top losersRUN Sunrun Inc. 9.84 -1.27 (-11.43%)HL Hecla Mining Company 5.59 -0.57 (-9.25%)FICO Fair Isaac Corporation 1,703.17 -166.66 (-8.91%)SSRM SSR Mining Inc. 12.28 -1.17 (-8.70%)IAG IAMGOLD Corporation 6.89 -0.61 (-8.13%)Most activePROK ProKidney Corp. 3.7300 +3.1235 (+515.00%)LCID Lucid Group, Inc. 2.3000 +0.1900 (+9.00%)NVDA NVIDIA Corporation 160.00 +1.76 (+1.11%)SOUN SoundHound AI, Inc. 12.71 +1.33 (+11.69%)SOFI SoFi Technologies, Inc. 19.95 +0.71 (+3.69%)Earnings eventsTrending tickersPROK ProKidney Corp. 3.7300 +3.1235 (+515.00%)QS QuantumScape Corporation 8.18 +1.17 (+16.69%)OXY Occidental Petroleum Corporation 45.75 +2.40 (+5.54%)INTC Intel Corporation 23.59 +1.59 (+7.23%)SOUN SoundHound AI, Inc. 12.71 +1.33 (+11.69%)Top economic events