Aviva renewable portfolio is now more than 150% of the size of the fossil fuel power generation book it exited
Aviva renewable portfolio covers enough renewable energy to offset the equivalent of 24.8 million tonnes of CO2 annually
Aviva is now a UK leader in battery storage insurance
Aviva is targeting a top three position as a renewable energy insurer in the London Market by the end of 2022
Expert underwriting and claims team focused on the renewables market
Aviva’s renewable energy insurance business has grown to more than 150% of the size of the fossil fuel power generation book it exited in 2019. A strong presence in the onshore wind, solar power and battery storage markets has helped drive the success of this fast evolving business.
The insurer’s renewable energy insurance proposition now globally covers enough energy to offset the equivalent of 24.8 million tonnes of carbon dioxide annually. Aviva is also a UK market leader in insuring battery storage and is targeting a top three position as a renewable energy insurer in the London Market by the end of this year.
Launched in 2019, Aviva’s integrated package of renewable energy insurance is designed specifically to support a variety of clients in a complex and growing market. It provides commercial customers with a single package of insurance to cover the whole life cycle across marine project cargo, construction and operational, third party liability and terrorism cover.
A key part of Aviva’s renewables success has been the growth in battery storage cover, which enables the storage of electricity for future use on a utility scale, removing fluctuations or disruptions caused by weather or other conditions.
Aviva has invested in its renewable energy expertise, hiring an experienced underwriting team. Underpinning its growth is the increasing momentum as organisations and countries work towards their net-zero commitments.
A dedicated underwriting team has expanded both in knowledge and capability, with recent hires including industry-leading experts Dr Tariq Dawood from EDF in risk engineering, Melanie Carter from WTW and Caroline Reading from RSA, who are joined by Clare Such (internal appointment) in underwriting .
ESG underwriting philosophy
The rapid growth of Aviva’s renewables portfolio follows its decision to stop insuring firms directly involved in operational fossil fuel power generation.
The rationale for the move away from carbon intensive industries is outlined in Aviva’s ESG Baseline Underwriting Statement, which specifies the risks that Aviva will no longer insure:
- The construction of coal-fired power stations
- The construction or operation of thermal coal mines
- Power generation risks that generate power from coal
- Any new fossil fuel mining or extraction projects
- Companies where more than 5% of their revenues are directly generated from extracting fossil fuels
- Offshore oil and gas rigs and platforms
Aviva’s underwriting approach to fossil fuels underpins the insurer’s view that the highest emission fuels cannot be part of a net-zero future. In supporting the transition to a low-carbon, sustainable economy, Aviva is continuing to work with customers on climate action and to provide insurance and risk management solutions to those firms that are actively taking steps to move away from high carbon fuels.
Aviva has aligned its insurance approach to the objectives of the Paris Agreement to limit global warming to 1.5 degrees, and it builds on the insurer’s role as a founding signatory of ClimateWise, the Powering Past Coal Finance Principles, and the UN-convened Net Zero Insurance Alliance.
Nick Major, MD, commercial lines, General Insurance at Aviva said: “Since launching our renewable energy portfolio we have seen strong, consistent growth. This has been driven by a number of factors including the natural growth of renewables as countries work towards achieving net zero in 2050 – particularly in the US - and growth in battery storage where we are now a UK leading insurer.”
“COP26 has refocused us all on the importance of living and working more sustainably. We have brought in industry leading expertise on risk engineering, underwriting and claims service to form a comprehensive insurance proposition. Renewables is a highly specialised marketplace so we have brought together the expertise to match. We will continue to build on our renewable proposition in 2022 and explore other options in the market such as offshore wind or green hydrogen fuel.”
Notes to editors:
- We are the UK’s leading Insurance, Wealth & Retirement business and we operate in the UK, Ireland and Canada. We also have international investments in India, China and Singapore.
- We help our 18.7 million customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
- We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2022, we paid £23.2 billion in claims and benefits to our customers.
- In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. We are aiming to have a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030. While we are working towards our sustainability ambitions, we acknowledge that we have relationships with businesses and existing assets that may be associated with significant emissions. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability
- Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
- As at 30 June 2023, total Group assets under management at Aviva Group were £358 billion and our estimated Solvency II shareholder capital surplus as at 30 September 2023 was £7.6 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
- For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
- The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
- You can follow us on:
- For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva