NorthStandard and NIORD Forge Strategic Partnership

In a significant move for the offshore renewable energy sector, NorthStandard and NIORD have announced a strategic partnership aimed at enhancing their underwriting capabilities. This collaboration will focus on insuring fixed and floating wind farms, as well as other renewable energy devices. The partnership is set to take effect on January 1, 2025, and it promises to bolster the financial capacity available for insuring these vital energy sources. With the growing demand for renewable energy, this partnership comes at a crucial time for the industry.

Expanding Insurance Capacity for Renewable Energy

Under the new agreement, NorthStandard will contribute an additional US$30 million in capacity to NIORD’s existing insurance offerings. This increase will raise NIORD’s total capacity in the offshore renewable energy sector to US$160 million. NIORD already has a solid foundation, with an established capacity of US$115 million, which was initially built from 100% Norwegian Hull Club (NHC) security. This capacity has since expanded to include other key players like Alandia, SiriusPoint, and Cincinnati.

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The partnership not only enhances financial capacity but also aims to develop sector-specific liability products. Jeremy Grose, Managing Director of NorthStandard, emphasized the importance of this collaboration in supporting the growth of offshore wind energy. He noted that NorthStandard has a long-standing history of providing insurance coverage for various aspects of offshore wind farm operations, including construction, installation, maintenance, and overall management.

NIORD’s approach to underwriting is characterized by a careful balance between volatile construction risks and more stable operational risks. This strategy is particularly important in the offshore wind sector, where there can be significant delays before assets become operational. The partnership is expected to further strengthen NIORD’s position in the market, especially as premiums in the sector have seen dramatic increases from 2018 to 2024, with continued growth anticipated in 2025.

Commitment to Sustainable Energy Solutions

The partnership between NorthStandard and NIORD reflects a shared commitment to advancing sustainable energy solutions. Paul Jennings, Managing Director of NorthStandard, highlighted the exciting opportunity this collaboration presents. He noted that both companies bring deep knowledge and technical expertise to the table, which will enhance the support available to the offshore renewable energy sector.

Georg Nygaard, CEO of NIORD, expressed the company’s ambition to establish market leadership in the offshore wind farm sector. He emphasized that the partnership will not only increase capacity but also differentiate NIORD through its expertise in ancillary liability risks. This strategic alliance is expected to provide a first-class claims service while adapting to the evolving needs of their clients.

Hans Christian Seim, CEO of the Norwegian Hull Club and Chair of NIORD’s Board of Directors, also praised the partnership. He noted that it adds significant financial strength and experience to NIORD, particularly in the Protection and Indemnity (P&I) segment. This collaboration marks a pivotal moment for both companies as they work together to support the growth of offshore renewable energy and contribute to a more sustainable future.