AXIS offshore wind claims study highlights loss drivers and pressure points for insurers
A new AXIS Capital analysis of four years of offshore wind claims data points to turbines,export cables and foundations as the main technical loss drivers - and signals rising operational losses that could reshape pricing, wordings and risk-engineering priorities for insurers.
Drawing on AXIS Global Energy's international portfolio of open and closed construction and operational claims from January 2021 to September 2025, the report found that wind turbines account for 57% of all claims by count and 37% of total incurred losses. More than two-thirds of turbine claims relate to drivetrain components, reinforcing longstanding concerns around mechanical breakdown in larger, more complex machines.
For insurers, that profile underscores the continued importance of robust OEM warranties, active defect management, and clear allocation of responsibility between warranty, construction all-risk, and operational all-risk policies. It also raises questions about aggregation and serial loss potential as developers roll out larger turbine classes across multiple projects.
Export cables emerged as the most severe loss category. According to the report, they generate only 6% of claims by number but have the highest average claim cost, at $18.8 million, largely because failure can trigger prolonged loss of generation and business interruption while faults are located and repaired. Inter-array cables represent 14% of claims and 14% of total losses, with an average claim of $6.7 million.
Those figures are broadly in line with wider market experience. Allianz, for example, has reported that cable incidents represent a significant share of offshore wind losses by value in some European markets, and specialist adjusters have indicated that cables can account for a majority of financial losses in certain portfolios. For underwriters, that concentration intensifies scrutiny on cable design, installation methods, route engineering, and contractor track records, as well as the structure and pricing of business interruption extensions.
AXIS reported average wind turbine foundation claims of $7.4 million, often linked to pile running, pile rejection and seabed-related installation challenges. With monopiles still accounting for the majority of fixed-bottom substructures globally, these issues are likely to remain a core focus for construction all-risk underwriters, according to the report.
Complex marine spreads, tight installation windows, and adverse metocean conditions mean foundation losses can escalate quickly, particularly where specialist vessels are on high day rates and remobilization is required. Previous research associated with the Lloyd’s market has indicated that vessel costs alone can represent a substantial share of the cost of a typical offshore cable claim; similar dynamics apply to foundation rectification work.
While AXIS reported that construction-phase claims remained broadly steady over the period, operational claims increased in frequency, driven largely by turbine breakdowns and aging assets. That trend is consistent with other market commentary, which has pointed to both higher frequency and higher severity of offshore wind claims over the last decade, influenced by larger assets, more remote locations, and inflation in repair and vessel costs.
This shift has several implications, namely, differentiation of pricing and deductibles between younger and older fleets and between proven and newer turbine platforms; closer attention to operations and maintenance strategies, condition monitoring, and data sharing; and more conservative views on attachment points and limits for operational all-risk and business interruption coverage, particularly where export cables and main transformers represent single points of failure.
Recent renewable energy market updates from major brokers have also highlighted that increasing turbine size and more extreme weather are contributing to longer outages and higher business interruption claims, while overall capacity for large offshore construction placements remains finite.
AXIS framed its findings as an argument for more data-driven collaboration between developers, OEMs, insurers, and brokers. The report flagged four priority areas for strengthening project resilience as turbines get larger and projects move into deeper, harsher waters, including rigorous design and manufacturing oversight; strong quality assurance around critical components such as export and inter-array cables; enhanced vessel and logistics planning; and early, robust risk-engineering engagement during project development and contract structuring.
From an underwriting standpoint, the claims patterns support several trends already emerging in the market: tighter wordings and sublimits around cables and other high-severity components, including clearer treatment of defects, serial losses, and remedial works; greater use of warranties and conditions precedent relating to installation procedures, burial depth, protection systems, and inspection regimes; more granular rating that distinguishes by turbine class, site conditions, contractor experience, and supply chain robustness; and increased reliance on engineering referrals and independent technical review, especially for newer technologies such as floating foundations and higher-voltage export systems.
The AXIS reported effectively updates the loss map for offshore wind. How the market responds - through pricing, capacity, contract wording, and deeper risk-engineering engagement - will help determine whether offshore wind remains an attractive long-term class or continues to test carriers’ risk appetite in the next build-out cycle.
