In a world of information overload, there is a real need and requirement to be able to base clear and concise decision making on accurate and relevant data. It is too easy to read reviews, check social media platforms and rely on hearsay to influence decision making processes; while this is not certainly all bad, there remains an ongoing realisation that 'real' data remains one of the main drivers of business growth and development. From an insurance perspective, how does relevant data influence the buyer and the seller in the transactional process?
The renewable energy industry continues to grow at a staggering rate, as countries remain committed to delivering on their environmental promises. Risk profile and risk engineering processes provide clear and demonstrable data on which to make key business decisions, but there also remains a strong emphasis on loss trends and loss ratios when assessing and profiling a risk.
Accurate and detailed claims data can provide not only a snapshot of renewable energy loss frequency but also where, how, and why losses occur. This claims data can then be used as a key tool to help structure insurance programmes and provide meaningful insights to EML studies.
The goal is to turn data into information, and information into insight.”Carly Fiorina | ex CEO of Hewlett-Packard
Detailed data obtained through the claims investigation and adjustment process enhances risk mitigation considerations: understanding causes of loss, the implementation and/or upgrading of lightning protection systems or improving the logistical management of spare parts and consumables. Conversely, insurers may look at similar data and loss trends to determine deductible levels or to apply more restrictive cover or warranties within insurance programmes.
Similarly, identifying Onshore Wind losses by cause gives the ability to evaluate loss trends, irrespective of technologies. This is of particular interest when looking at Natural Catastrophe (Nat Cat) or weather-related causes.
Nat Cat claims such as those outlined by WTW’s Renewable Energy Loss Database (RELD) are unavoidable, but it’s possible to control the impact they have on a business. By making informed decisions about limits and deductibles, companies can ensure that they have adequate cover and, at the same time, avoid ceding too much money to insurers. And through a process called Risk Optimisation, companies can make better decisions as to their risk retention and insurance strategy.
Ultimately, having access to clear and concise claims data can help to influence business decisions around technology, suppliers, and design. It can also help shape the discussions around the structure of insurance programmes, the level of cover and the ability to challenge terms offered by insurers.
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|The power of data: using WTW’s Renewable Energy Loss Database