Turbit Podcast, Episode #3: AI meets Insurance - New Ways to minimize Risk in Wind Energy with Nino Göhmann
- Patrícia Midori Junginger
- Apr 29
- 4 min read
By exploring the untapped potential of AI and insurance partnerships, Turbit and HDI Global are creating new models for risk management in wind farm operations.
In the third episode of the Turbit Podcast, Michael Tegtmeier, CEO and Founder of Turbit, hosts Nino Göhmann from HDI Global, one of Germany's leading industrial insurers, to discuss how AI and insurance are coming together to minimize risk in wind energy operations. Their conversation reveals the evolution of wind energy insurance, explains current challenges in the industry, and introduces Turbit Blue, a pioneering solution combining AI monitoring with specialized insurance coverage.
The Evolution of Wind Energy Insurance
Nino brings over two decades of insurance industry experience to the conversation. As he explains, the wind energy sector has undergone significant transformations in its approach to risk management.
In the early days of commercial wind energy (approximately 30-35 years ago), wind turbines were treated like any other machine; they were simply insured against external events like natural hazards, theft, and vandalism. However, as turbines grew in size and complexity, a new model emerged.
The turning point came when many insurers pulled out of the wind sector due to increasing damage rates and claims. This created a market gap that manufacturers, notably Enercon, filled by developing maintenance contracts that essentially transferred the technical risk from insurers to manufacturers.
These full service agreements (FSAs) became the industry standard, making wind projects more financially viable and driving sector growth, especially when combined with feed-in tariffs that guaranteed stable electricity prices.
The Problem with Modern Full Service Agreements
As Nino explains, modern wind turbines have grown exponentially in size and complexity. While a 2.3 MW turbine might have cost around €3 million in the past, today's 6-7 MW turbines can cost €12-13 million. This dramatic scaling has created new challenges:
Liability limitations: Due to competitive pressures and higher component costs, manufacturers have systematically limited their liability in full service contracts. What started as simple agreements (5-6 pages) have evolved into complex 180-page documents with numerous exclusions.
Loss of control: Operators surrender significant control over their assets, often lacking transparency about what's happening with their turbines.
Coverage gaps: Many FSAs now include either monetary caps (for example, €1 million maximum liability) or point-based systems with limited coverage.
Longer downtimes: Supply chain issues have extended repair times dramatically, with some components taking 15-18 months to replace, which is far beyond the typical 12-month business interruption coverage.
Nino notes that manufacturers had to make these changes to remain economically viable, but the result is that wind farm operators are left bearing significant uninsured risks.
Turbit Blue: A New Approach to Wind Turbine Risk Management
This gap in coverage led to the collaboration between Turbit and HDI Global, creating Turbit Blue, a solution that Michael describes as "AI plus software plus insurance."
The core concept is elegantly simple: By detecting potential issues before they cause major damage, Turbit's AI monitoring allows manufacturers to address problems within their normal maintenance activities. This prevents small issues (like an unplugged cooling fan or a missing screw) from escalating into catastrophic failures that would exceed liability limits.
Here is a concrete example: A major gearbox failure might cost €500,000, but the manufacturer's liability might be limited to €100,000, leaving the operator exposed for the remaining €400,000 plus potentially 18 months of business interruption losses.
With Turbit Blue, these scenarios can often be avoided entirely because:
The AI detects anomalies early and predicts their specific cause
The issue is verified by Turbit's technical team
The manufacturer is notified with specific information about the potential problem
The repair is made during normal maintenance, often at minimal cost
The major damage never occurs
For those cases where damage does occur despite preventive efforts, HDI's insurance covers the gaps in the manufacturer's liability.
Benefits for All Stakeholders
What makes Turbit Blue particularly compelling is that all parties benefit:
For wind park operators:
Greater transparency into turbine conditions
Reduced risk of catastrophic failures
Coverage for liability gaps in maintenance contracts
Extended turbine lifespans
Reduced operational expenses
For manufacturers:
Ability to address issues before they become major warranty claims
More efficient use of service personnel
Maintained profitability of maintenance contracts
Better understanding of their turbines' performance
For insurers:
Reduced claim frequency and severity
Better risk assessment capabilities
Data-driven insights into wind turbine performance
New premium streams
Even banks and investors benefit from the reduced risk profile of insured assets.
Looking to the Future
Both Michael and Nino believe the industry is at a turning point. Nino predicts that technologies like Turbit's AI monitoring will eventually be recognized as essential safety devices, potentially becoming required for insurability.
As turbines grow larger and more complex, and as the industry faces challenges like skilled labor shortages and supply chain delays, solutions that provide both risk reduction and transparency will become increasingly important.
Most significantly, the collaboration represents a shift from an adversarial industry model (where operators, manufacturers, and insurers often worked against each other) to a collaborative approach where data transparency and early intervention benefit everyone.
The Impact on Wind Energy Economics
Turbit Blue is making wind energy more economically viable by reducing unforeseen costs and risks. By combining HDI's insurance expertise with Turbit's AI technology, the partnership creates a more stable operational model for wind farms.
As Michael notes, this isn't just about making insurance cheaper, but fundamentally reducing risk and increasing turbine availability, which directly affects the profitability of wind energy projects.
In an era where the industry is pushing for 100% renewable energy, innovations that improve the economics of wind power are essential. Turbit Blue represents an important step toward that goal by addressing one of the sector's most persistent challenges: managing risk in increasingly complex machines.
Listen to the full episode to discover a new way to minimize risks:
Comments