NorthStandard and NIORD have entered into a strategic partnership to enhance their offshore renewable energy underwriting business.
Starting 1 January 2025, NorthStandard, a global marine insurer, will contribute an additional US$30 million in capacity to ensure fixed and floating wind farms, as well as renewable energy devices.
This collaboration is part of a broader risk management agreement between renewables-focused NIORD and NorthStandard, with plans to develop additional sector-specific liability products.
Jeremy Grose, Managing Director of NorthStandard, stated: “This strategic partnership with NIORD builds on our commitment to support and facilitate the growth of offshore wind energy and other renewable sources. NorthStandard has a long history of providing cover for members involved in the construction, installation, maintenance, and operation of offshore wind farms.”
NIORD, which currently holds a capacity of US$115 million in the sector, initially backed by 100% NHC security from 1 January 2024, has expanded its capacity by including Alandia, SiriusPoint, and Cincinnati.
From 1 January 2025, its capacity will rise to US$160 million, incorporating the US$30 million from NorthStandard, plus an additional US$15 million from Beazley and Blenheim. NIORD’s cautious approach effectively balances the risks associated with volatile Construction All Risk (CAR) insurance and the more stable operational risks in the offshore wind sector, considering the delay before assets are operational.
Between 2018 and 2024, premiums within this sector saw significant growth, and further acceleration is expected in 2025.
Georg Nygaard, CEO of NIORD, said: “NIORD’s aim is to establish market leadership in the offshore wind farm sector and grow its position as a specialist underwriter for other offshore renewable devices. Our strong underwriting position reflects our cautious approach to risk selection and expansion. Our partnership with NorthStandard will grow capacity progressively and differentiate NIORD on ancillary liability risk expertise.”
Hans Christian Seim, CEO of the Norwegian Hull Club and Chair of NIORD’s Board of Directors, added: “It is a pleasure and a source of pride to see how the NIORD story continues to develop. This latest strategic partnership with NorthStandard adds important financial strength, as well as experience within the P&I segment, to NIORD.”
