Interview:


Michael Bernay, PER se


Committed to the cause T


he renewable energy business is a fast- paced and challenging market which


requires investment in exceptional services and a willingness to adapt and evolve with changing technologies. For PER se—a managing general underwriter


(MGA) specialising in property/casualty insurance products for energy and power production—a heavy focus on renewable energy and a desire to succeed has led the business to the strong position it currently holds in the market. Michael Bernay, the company’s CEO, says


that technology is a key driver of this market, and says that now is a very interesting time, especially as project warranties are increasingly coming to an end. “You must stay connected with the change in


technology,” he explains. “For example, China is becoming a lot more aggressive with providing products and technology both in wind and solar. There are new technologies coming about all the time and you can’t shy away from those. If you do, you’re going to lose business.” Bernay explains that a lot of these projects have been under warranties by their manufacturers but now these warranties are coming to an end, forcing those involved to consider future maintenance and how they’re going to contract for that. “We’ve just come out with a new warranty


package as we think that there’s going to be a lot of need for this type of coverage in the solar and wind business,” he says. While the majority of time technology is


being discussed with regard to its positives, when something goes wrong with the technology, this spreads so quickly within the market that it can get brushed aside. “Energy storage is an example of that,” he


explains. “However, it’s going to be a part of the space whether we like it or not. “One of the biggest challenges in the renewable sector is making a commitment to it.


8 | PCI TODAY | DAY 3: Tuesday October 27 2015 Michael Bernay


There is no doubt that you will have losses, so the big question is: are you going to commit?” Bernay says. That commitment needs to come in the form


of specialists that can create an accurate cause of loss programme and provide loss controls up front. “For us, once we experience a claim, we don’t


just want to pay it, we want to get among it and really understand it. That’s an investment that you have to make, but it does cost money,” he says.


“You might require two or three specialist,


electrical engineers for example, who can tell you why it’s happened. Some capital might not want to do that, but for us, we’ve been able to prove that it will save you around a $1million or more on a loss.”


Growth potential Bernay explains that for the renewable energy sector, the majority of exposures seen are


27.10.15 TUESDAY


Staying abreast of changing technologies and committing fully to the sector is the key to securing a healthy and profitable business in renewable energy risk, as Michael Bernay, CEO, Power.Energy.Risk; securing the environment (PER se), explains.


“There are new technologies coming about all the time and you can’t shy away from those.”


around mechanical and electrical breakdowns within wind projects. This is followed closely by construction, which is a common area of loss. However, he adds, catastrophe exposures also


play a vital role in this risk. “There was a time when these projects weren’t


built in catastrophe-prone areas, but that isn’t the case these days—especially for solar,” he says. Over time, the renewable energy market


has grown significantly, with the wind segment tripling in size since 2000. “When we put our first Lloyd’s line slip


together in 2000/2001, 90 percent of what we were doing was wind, and the US had maybe 25,000 megawatts. Since that time it’s tripled just on the wind side alone,” he says. “We’re still seeing a lot of organic growth in this market and it’s still attracting participants.”


Global expansion Looking ahead, the future looks bright for PER Se, which is backed by parent company Ryan Specialty Group. “We perform the loss control ourselves, so


that’s a benefit for both the client and the capital provider. We also manage our own claims and claims adjusting, so we’re hands-on,” Bernay says. “We had a marvellous 2015 and we are


already operating within 50 different countries and looking to expand on that. Our clients are looking for new regions to make money and we’re following them, boosting business on a global basis.


“We have an existing presence in London, and we expect to expand on that.” n


Michael Bernay is CEO at PER se. He can be contacted at: mbernay@powerenergyrisk.com


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