The engineering insurance branch has posted the highest growth rate this year to date, with a rate of increase of 73% in the first five months.
Industry players say that this was mainly due to the substantial growth of the offshore wind power business, according to local media reports.
However, although engineering insurance premiums for the first five months increased significantly, and part of the risks during the construction of offshore wind power installations can be transferred to reinsurance companies, large P&C insurance companies are more willing to engage in this branch than their smaller rivals.
According to data from property and casualty insurance companies, the premiums for engineering insurance signed by the top three domestic property and casualty insurance companies in the first five months of this year were NT$2.675bn ($82m), NT$1.493bn, and NT$1.267bn respectively, with annual increases of 72%, 134%, and 72% respectively.
Given the government's promotion of green energy policies, solar power and wind power installations are being insured. P&C insurers say that except for a few large solar power plants or special cases (such as floating systems), the Taiwanese insurance market can digest the insurance needs of green power generation facilities.
Still, industry sources say that offshore wind power installations are emerging risks due to their large insured amount and complex risks. Moreover, due to the huge insured amounts, there is less retention and a significant proportion of this risk is placed with the international reinsurance market.
In addition to earthquakes, typhoons, and submarine cable breaks, the risks associated with operational interruptions are more serious than onshore installations.