Our first thinktank of 2025 with senior underwriting and risk engineering professionals took place
recently. Co-hosted by Risk Solved and GWTInsight it developed on subjects raised at the previous forums and some of the topics that key in the year ahead.

Reflections of key topics during 2024

Several key topics from 2024 continue to shape the insurance landscape. A major concern is the
growing demand for risk engineering services amid a shrinking talent pool. Risk Solved place
emphasis on designing technology that supports both experienced and newer professionals,
ensuring usability across all devices.

The rise of generative AI and the digital transformation of the insurance industry remain central
themes and insurers invest heavily in data and AI. Lithium-ion batteries, found in everything from watches to e-scooters, pose significant risks and hidden hazards. Attention is also turning to safer alternatives as the technology evolves. Environmental, Social, and Governance (ESG) factors are becoming critical business drivers. With mandatory sustainability reporting on the horizon, many companies are proactively preparing.
Underinsurance remains a growing challenge, worsened by inflation, rising construction costs,
and outdated property valuations. An estimated 50–77% of businesses are underinsured, with
21% reducing coverage and 40% failing to update insured values in the past three years.
These issues reflect an industry in transition, balancing innovation with risk management amid
evolving market and regulatory pressures.

What’s happening in Risk Engineering and Underwriting?

Major focus areas include enhanced measures to reduce risk, minimize claims, and better protect
assets and revenue. Geodata is increasingly used to improve risk assessment accuracy, especially
for climate-related hazards. Political and economic shifts remain influential. AI continues to drive efficiency in risk surveying, with ongoing debate around balancing automation and human input and the emergence of tools like China’s DeepSeek adds to discussions around AI's future impact. While cyber risks are still rated medium to low by insurers, there’s growing investment in preventative strategies, reflecting a shift toward greater preparedness in the face of evolving digital threats.

Claims trends in renewables

A recent dataset reveals that 48% of insurance claims relate to property, 22% to liability, 5% to
major and complex losses, and only 1% to cyber-attacks. Overall, claims have increased by 7%
year-on-year, with 37% falling within the £1,000–£10,000 range.

Around half of claims are between £1,000 and £50,000, primarily domestic in nature — mainly
due to water damage. The average claim value is £36,000, while major and complex losses
average £296,000. Subsidence-related claims, likely caused by environmental factors, are rising,
with the commercial sector more proactive in prevention than the domestic sector.
In the renewable energy sector — covering wind, solar, fourth-generation gas, and hydro, energy
generation is split between 30% onshore, 60% offshore, and 10% battery storage. Risk
assessments are conducted during pre-construction, construction, and operational phases and
most claims are tied to loss of revenue rather than grid issues.
Solar farms experience relatively few mechanical failures, with most claims resulting from
extreme weather or inverter fires. Copper cable theft is a significant issue and to mitigate this
insurers commonly require anti-tamper devices, CCTV, and/or security patrols. Vandalism by
opponents of solar farms is less common.

Wind farms, having more moving parts, see frequent claims from mechanical breakdowns,
especially involving gearboxes and bearings. Causes include design flaws, maintenance errors,
and lightning strikes. Claim values in the UK are typically lower due to smaller installations. Wind
farms also require stricter standards and more specialised training than solar, but current trends
don’t yet warrant more rigorous checks. Overall, claims are driven by technological failures and
human error and with the rapid growth in the number of installations combined with quick
technology developments, lessons learned from past issues are not always applied effectively.

Mass Timber – identifying, managing and mitigating the property risks

Mass timber, typically made from European Spruce, includes products like Cross Laminated
Timber (CLT), Glulam, Dowel Laminated Timber (DLT), Nail Laminated Timber (NLT), and
Laminated Veneer Lumber (LVL). Its use in construction is rapidly growing, with the U.S. seeing a
17% increase in projects and a 30% rise in consumption between 2021–2022.
Praised for its ease of construction and aesthetics, mass timber carries risks — most notably fire,
due to combustible panels, and escape of water. Poor moisture management during transport,
storage, or installation can lead to structural issues and mould growth, with its additional related
health and liability concerns.

Currently, there are no defined standards for mass timber storage and transport, leading to a
reactionary rather than preventative approach. While sensors to monitor ambient conditions
offer proactive solutions, uptake is limited due to uncertainty over who is responsible for
monitoring the data.

Insurers may eventually mandate fire and water detection systems, but education is required to
align investment value with risk mitigation, and moisture control plans would likely be required;
difficult to implement and verify without defined standards in place. With an average 20-year lifespan, long-term sustainability is uncertain, particularly due to limited
historical data on durability and performance.

What do our audience say?

In summary, high value and importance is placed upon the opportunity to discuss industry issues and receive information on key topics. These include the impact of Climate Change, and Protection, along with the changing Political / Economic landscape. Subject matters speakers from underwriters, portfolio,
and risk managers with their perspective surrounding industry insights and challenges, and how GEOdata can provide better data on climate change and natural hazards to aid prevention are of particular interest.