Renew Risk has secured £5 million in funding to enhance its risk analytics capabilities for renewable energy assets. The funding round, led by Molten Ventures with contributions from Lloyd’s, Insurtech Gateway, and other investors, aims to refine the company’s risk modelling solutions. These solutions are designed to assess the impact of natural disasters such as hurricanes, earthquakes, and severe storms on renewable energy infrastructure, including offshore wind and solar farms. The investment is expected to support the company’s expansion and strengthen its role in financial decision-making for insurers, brokers, and asset managers.
Similar efforts in risk modelling for renewable energy have been gaining traction as insurers and investors seek more precise assessments of climate-related threats. Previous initiatives in this field have focused on developing predictive models to mitigate financial uncertainties, but gaps still exist in quantifying risks for evolving energy infrastructure. Renew Risk’s approach builds upon these past advancements by offering targeted risk analysis tailored to the renewable energy sector, addressing both immediate and long-term concerns for stakeholders.
How Will the Investment Be Used?
The newly raised capital will be directed toward refining Renew Risk’s proprietary risk models, expanding its workforce, and extending its global market presence. The company aims to bolster its team of risk modellers and climate experts to improve the accuracy of its analytics. Additionally, the investment will help broaden its services to a wider audience, including insurers and financial institutions seeking better risk assessments for renewable energy projects.
What Industry Experts Say?
Ashima Gupta, CEO and co-founder of Renew Risk, highlighted the significance of the investment in advancing risk models for renewable energy projects.
“This investment will accelerate our ability to build sophisticated risk models for the renewable energy sector, empowering stakeholders to navigate the complex challenges of disaster risk with confidence.”
Meanwhile, George Chalmers, Head of Climate at Molten Ventures, emphasized the necessity of such modelling for financing and insuring new renewable energy assets.
“Renewable assets coming online need to be financed and insured. The pace of deployment is being impaired by the lack of appropriate risk modelling for these new assets—leading to risk that isn’t properly quantified and priced.”
Lloyd’s, one of the investors in the funding round, sees potential in Renew Risk’s solutions for improving underwriting decisions in the insurance industry. Warren Clegg, Head of Private Assets at Lloyd’s, noted the value of the company’s analytics.
“Renew Risk’s solution will help our market and the insurance industry to have greater confidence in underwriting renewable energy projects around the world.”
The ability to quantify and price risks more effectively is expected to support the continued growth of renewable energy investments globally.
The integration of advanced risk analytics into the renewable energy sector is becoming increasingly important as climate-related disasters pose financial challenges to developers and insurers. By leveraging data-driven insights, companies can better anticipate potential losses and ensure that renewable energy projects remain financially viable. Similar initiatives in risk modelling have sought to bridge gaps in the market, but Renew Risk’s focus on renewable energy-specific analytics differentiates it from broader climate risk solutions.
As the demand for renewable energy expands, the necessity for accurate risk assessment tools grows alongside it. Investors and insurers require reliable data to evaluate the viability of projects, and comprehensive risk modelling plays a crucial role in this process. The recent funding will allow Renew Risk to advance its technology, potentially influencing how financial markets assess risks in renewable energy. The ability to quantify disaster exposure in a detailed manner could contribute to more stable investments and insurance policies, fostering confidence among stakeholders.
