RENEWABLE ENERGY INSURANCE WE RE BIG ON A CLEANER FUTURE

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1 RENEWABLE ENERGY INSURANCE WE RE BIG ON A CLEANER FUTURE

2 We re BIG on a cleaner FUTURE Renewable Energy is an important source of power for the growing energy demands of the 21st century. By harnessing the wind, water and sunlight, Renewable Energy is clean, efficient and naturally replenished. Other sources of energy, such as oil, coal and gas, are finite and will one day be depleted. Renewable Energy offers a sustainable solution with environmental, economic and social benefits. Some 40 years ago, RSA insured the first wind turbines in Denmark and recognized that Renewable Energy was a viable and exciting industry. RSA made Renewable Energy a priority by pursuing knowledge, building global expertise and developing products that addressed customers needs. Today RSA has Renewable Energy teams in more than 20 of our global operations, including Centres of Excellence in Canada, Denmark and the UK. RSA provides access to local decision-makers and specialists with insurance and energy expertise for Wind, Small Hydro, Solar, Bio, Wave and Tidal insuring onshore and offshore projects and operations around the globe. Renewable Energy is not risk free. Challenges include project delays, supply-chain difficulties, machinery failures, downtime and rising equipment costs. A strong insurer is pivotal to managing risk and developing solutions that speak to these unique risks. WE RE BIG ON PARTNERSHIP We partner with insurance brokers, manufacturers, developers, contractors and operators serving this sector. At RSA we understand the complexity of the business when it comes to managing risk and resolving claims quickly.

3 WIND ENERGY Wind power has emerged as one of the world s leading alternative energy sources. This fast-growing energy sector contributes record levels of new, clean and reliable power. As this sector has grown, a number of risks have emerged, including: Lightning strikes Storm damage Cable Damage Fire Increased business interruption from supply chain delays RSA has been an integral part of the Wind Energy sector at every stage of its development. We know that for every day a turbine is not in operation, revenue is lost. With our market-leading coverage and claims handling expertise, our network of loss adjusters and suppliers will get operations running as soon as possible. SMALL HYDRO Small Hydro power has been providing sustainable, renewable energy for more than a century. It is a proven technology and an attractive proposition for those with the requisite expertise and capabilities. RSA targets Small Hydro (1MW to 50MW), which typically supplies power to the electricity distribution network. To put this in context, a 1MW hydro plant can provide electricity for about 750 homes. Through our specialist underwriters, we have extensive experience providing insurance to the Small Hydro sector helping our customers protect against many risks, including: Flood Forest fire SOLAR ENERGY Scientists calculate that enough sunlight falls on the earth in just one hour to meet the world s energy demands for an entire year. That amazing fact underscores the beauty and abundance of solar power. This economically viable source of energy is gaining traction and RSA insures a full range of technologies, including: Photovoltaic converts sunlight directly into electricity Solar Thermal harnesses solar energy to convert it into heat Concentrator solar energy is concentrated through lenses or mirrors to generate power With the evolution of solar technology, the risks are varied and include: Hail/snow/wind Geological hazards Theft Fire BIOENERGY Many responsible companies, including RSA, are seeking new ways to source solutions to their energy and waste-management needs. Biomass currently supplies more than 10% of global energy needs and is poised for growth. Biofuels are so widespread in certain countries, such as Brazil, that pure gasoline is not sold. The BioEnergy industry is generally segmented into these areas: Biomass the combustion of plant materials or waste to generate electricity and/or heat Biogas produced by the biological breakdown of organic matter which is then used as a fuel to drive electrical generators or produce heat Biofuel the conversion of organic materials to create fluids that are combustible. The plants or energy crops used in each BioEnergy process vary significantly. The processes range from relatively simple and widely used incinerators in Biomass plants, to chemical installations in Biofuel plants. This industry is constantly developing new technologies such as gasification in municipal waste-to-energy plants and anaerobic digestion for converting animal waste to gas. With rapid expansion and innovation, businesses need to protect against many risks, including: Large inventories of combustibles The prototypical nature of some processes Fire The businesses involved in this sector are diverse from farmers and foresters, to waste management companies and utilities. RSA s global experience in BioEnergy demonstrates we can cover the unique insurance needs of this sector. WAVE AND TIDAL ENERGY While wave and tidal energy technology remains in its early stages, this sector has immense potential. Projects are underway in Europe, Canada and Asia with the long-term plan of meeting a sizeable percentage of the globe s electricity demand. RSA is excited about its future and the role we can play in its maturity. CONTACT For more information, contact your local underwriter or visit rsabroker.ca/gsl.

4 PRODUCTS We provide full service insurance solutions from the manufacturing of the equipment and early shipment of materials, through to the construction phases and the operational life of the facilities. TRANSIT Marine Transit and Marine Delay in Start-Up is covered by Coast Underwriters Ltd. RSA s marine insurance partner CONSTRUCTION Contract Works coverage for property damage caused during construction Advance Loss-of-Profit coverage for consequential losses to revenue caused by delays in construction Testing and commissioning Wrap-Up Liability OPERATION Property All-Risk, including Machinery Breakdown Business Interruption coverage is provided for operational downtime as a result of an insured loss Commercial General Liability CONTRACTORS AND MANUFACTURERS Coverage for component and manufacturers premises and equipment Coverage for specialist contractors (i.e., meteorological towers and heavy-lifting equipment) CAPACITY Capacity up to $400 million best risk for Contract Works and Operational Property/ Equipment Breakdown Capacity of up to $25 million for Liability covers Renewable Energy Fast Facts Wind farms in Canada have an installed capacity of 6.500MW enough electricity to power over 2 million homes or 3% of Canada s total electricity demand* RSA Canada insures wind farms from the Pacific to the Atlantic producing over 1,000MW of electricity powering over 300,000 homes RSA is one of the world s largest insurers of Wind Energy providing specialized underwriting and risk control expertise in Canada and our Centre of Excellence in Denmark source: Canadian Wind Energy Association

5 The RSA Difference First to market in the provision of renewable energy insurance worldwide Insurance providers to approximately 80% of offshore wind farms Extensive experience in Small Hydro projects around the world Local underwriters specializing in Renewable Energy Centres of Excellence in Canada, the UK and Denmark Specialized RSA policy wordings for Small Hydro, Solar and Wind Expert risk control and engineering services serving broker and client needs Exceptional claims service OUR FINANCIAL STRENGTH As a global insurance leader, we have the financial strength and stability to inspire confidence in our business. RSA holds an A rating from Standard & Poor s (S&P) and an A2 rating from Moody s.

6 ABOUT RSA RSA Canada includes Roins Financial Services Limited, Royal & Sun Alliance Insurance Company of Canada, Quebec Assurance Company, Johnson Inc., Western Assurance Company, Ascentus Insurance Ltd., Canadian Northern Shield Insurance Company, RSA Travel Insurance Inc./Assurance Voyage RSA inc., L Union Canadienne, Compagnie d assurances, and is part of the RSA group of companies headed by RSA Insurance Group plc. RSA Canada employs approximately 4,200 people and is represented by a large network of brokers across the country. In 2012, the Canadian Group wrote $2.8bn in direct premiums with assets exceeding $7.6 billion. RSA is a trade name of Royal & Sun Alliance Insurance Company of Canada. RSA and the RSA logo are trademarks used under license from RSA Insurance Group plc Royal & Sun Alliance Insurance Company of Canada. All rights reserved. RSA, RSA & Design and related words and logos are trademarks and the property of RSA Insurance Group plc, licensed for use by Royal & Sun Alliance Insurance Company of Canada. RSA is a trade name of Royal & Sun Alliance Insurance Company of Canada. The information in this brochure is intended for promotional purposes only. It contains some information about coverages and services offered by RSA, but does not list all the conditions and exclusions which apply to described coverages and services. The actual wording of the policy and the local law govern all situations. rsabroker.ca/gsl