On the Insurance Pool for Offshore Wind Power
Offshore wind power is one of the important sources of electrical supply. However, the related industry not only involves infrastructure of many kinds but also is risky. Due to underwriting capacity, non-life insurers in Taiwan currently only serve as fronting offices and therefore cannot really obtain profits through risk-taking. The purpose of this paper is to explore the possibility of establishing a insurance pool for offshore wind power through reviewing all existing mechanism for risk diversification. We suggest that The Non-Life Insurance Association of the Republic of China can form a pool of offshore wind power insurance to insure relevant risks for the time being. In the long run, however, we would suggest that the Engineering Insurance Association play a bigger role in the diversification of offshore wind power risks.