$40M Solar Power Project in the Cook Islands Covered by Stamford

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Stamford Insurance using its construction insurance expertise and connections in the London market.

Local underwriters were unable to provide the cover required for the project which is being largely funded by the Government of New Zealand under its Overseas Aid programme for the Pacific Islands.

“New Zealand is working in partnership with the Cook Islands’ Government to boost renewable energy use across the islands. The goal is to provide efficient, reliable, safe,affordable, and sustainable electricity,” said High Commissioner Joanna Kempkers.

The Cook Islands Government has set ambitious targets for 50 per cent renewable energy by 2015 and 100 per cent by 2020.

The energy initiatives in the Cook Islands are part of a wider programme of sustainable energy initiatives across the Pacific that the Ministry of Foreign Affairs and Trade is supporting through the New Zealand Aid Programme.

Stamford worked closely with Auckland broker, Penberthy, to place the Contract Works programme, insuring the interests of the respective governments, the main contractor and their nominated sub-contractors.

Director Duncan Colebrook said “We are proud to be associated with such a prestigious project and pleased to be able to deliver competitive terms when no other local company could step up. It demonstrates once again our understanding of the construction industry and our ability to deliver quality and value in insurance”

Insurance Cover Now Offered for Earthquake Prone Buildings

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Owners of unreinforced masonry buildings built before 1935 have had a difficult time in the last 12 months as insurers try to balance their books in the wake of the Christchurch earthquake. A number of property insurers have pulled out of the market entirely and those who remain have slammed owners with massive premium hikes and restricted cover.

Even in Auckland full cover based on the reinstatement value of such buildings is proving difficult to obtain. Owners of buildings which have a rating of less than 34% of the New Building Standard are in many cases being offered indemnity cover only, which can be equal to less than 40% of the full replacement cost.

Now all that could change with a new initiative from insurers keen to step in and provide full cover against all perils, including earthquake and other natural disasters, at realistic premiums on properties in Auckland, Northland and the Waikato.

Stamford Insurance, a specialist broker, is now able to offer cover with Lloyd’s of London on unreinforced masonry buildings. The sum insured can be based on the re-building cost of the property and cover can also include loss of rent insurance.

Stamford has been working with several syndicates for months to negotiate the new cover and now anticipates strong demand from owners, their financial partners and mortgagees.

A spokesman for the company said “The Lloyd’s market has a reputation for stepping in where others fear to tread and has been the world’s leading specialist insurance market for many years. Lloyd’s has an A+ rating from Standard & Poor’s (Very Strong) and will satisfy the most demanding clients in terms of security.”

To be eligible for consideration, full details of the risk must be submitted, including a recent seismic engineer’s report and current valuation. That information is assessed locally and then sent directly to London for a quotation, so at the moment cover is only available where the reinstatement value exceeds $10M. In theory there is no upper limit. It is hoped to extend the scheme to lower value properties later in the year.