Cirrus Advisers Risk and Insurability Report
Hail accounts for less than 2% of solar project insurance claims by volume—but more than 50% of total dollar losses. However, hail is not the only high-hazard peril that affects solar project risk and insurability. For a holistic understanding of asset-level risk exposure, natural catastrophe (Nat Cat) models must also characterize the perils associated with earthquakes, named wind storms, inland floods, severe convective storms, and wildfires. By identifying and characterizing the economic risk of these perils during early-stage development, stakeholders can take steps to mitigate specific risks or properly price potential insurability concerns during project planning.
Since 2021, CAC Specialty Natural Resources has partnered with VDE Americas to provide a comprehensive analysis of project risks that is unavailable elsewhere in the market. Specifically, Cirrus Advisers, a division of CAC Specialty, offers solar project risk and insurability reports informed not only by industry-standard catastrophic risk models but also by VDE Americas' best-in-class hail loss models. The result of the partnership is an entirely unique all-catastrophe risk report providing site- and technology-specific engineered probable maximum loss (PML) and average annual loss (AAL) estimates for hail, the leading cause of solar project losses.
