Report Shows Wind Turbines Are The Biggest Driver of Offshore Claims

Why It Matters

The concentration of claims on turbine components and high‑value cables drives project cost overruns, influencing financing and insurance structures for offshore wind farms.

Key Takeaways

• Turbines cause 57% of offshore wind claims.
• Drive‑train damage comprises two‑thirds of turbine claims.
• Export cables average $18.8M per claim, highest cost.
• Foundations account for 8% claims, $7.4M average.
• Industry adopts cable stabilization to reduce risk.

Pulse Analysis

The AXIS Capital offshore wind report underscores how turbine hardware now dominates loss exposure, with 57 % of all claims tied to the machines themselves. Within that segment, drive‑train elements—generators, gearboxes and main bearings—account for roughly two‑thirds of turbine‑related incidents, reflecting the mechanical complexity of modern rotors. Compared with earlier industry surveys, the share of turbine claims has risen sharply, suggesting that as turbine sizes increase, so does the probability of component fatigue and failure. Stakeholders must therefore reassess risk models that previously emphasized foundation or cable losses.

High‑severity claims continue to stem from the electrical backbone of offshore farms. Inter‑array cables represent 14 % of claim counts, averaging $6.8 million, while export cables command the highest per‑claim payout at $18.8 million. These figures highlight the financial vulnerability of long‑distance power transmission in harsh marine environments, where abrasion, burial errors, and seabed movement can trigger costly repairs. Recent industry responses include enhanced cable stabilization techniques, such as rock dumping and dynamic positioning, which aim to curb movement‑induced stress and lower claim frequency.

The shifting claim landscape has direct repercussions for project financing and insurance underwriting. Lenders and investors now demand tighter performance guarantees on turbine components, prompting developers to secure longer warranty periods and invest in predictive maintenance analytics. Insurers are adjusting premium structures, pricing turbine‑related exposure higher than foundation risk, and offering risk‑sharing arrangements tied to real‑time monitoring data. As offshore wind capacity expands toward 300 GW by 2035, the ability to mitigate these technical risks will be a decisive factor in achieving cost‑competitive, bankable projects.