Stefan Jevremović, ACB insurance broker – How insurance protects billions in RES projects?

- The Company for intermediation in insurance ACB d.o.o. has positioned itself as a leading broker in RES project insurance thanks to several key advantages. First of all, ACB is the first broker on the insurance market that has been a member of the Association of RES Serbia since its foundation, which enables us to have direct access to the latest information and trends in the field of renewable energy sources. Our long-term experience and wide portfolio of clients, including over 650 companies, enables us to provide the best terms and prices of insurance. The exclusive partnership with the Aon Corporation, one of the world`s largest brokers, further strengthens our position on the market. ACB is specialized in all segments of insurance needed in RES, including assessing risk, finding optimal coverage, providing quality service and advice in case of adverse events, and securing the most favorable premiums on the insurance market.

- Insurance of RES projects includes several specificities and challenges. First and foremost, risk assessment is key, because it is necessary to anticipate all possible dangers that may endanger the project. Finding the optimal coverage that will protect the client`s interest

and meeting creditor requirements is also a challenge. Providing quality service and advice in the event of adverse events is essential, as well as securing the most favorable premiums on the insurance market. Challenges include project complexity, the need for specialized knowledge, and the anticipation of all risks. For example, the risk of delay due to the possibility of finding archaeological remains can be a significant challenge. To our clients` satisfaction, we recognize these challenges, considering the significant experience in already implemented projects, and we create solutions to overcome just those challenges.

- Insurance helps investors to minimize risks during different project phases, from construction to operation, due to the fact that during the project life cycle, insurance covers the transit of sea cargo, construction, delay in project initiation, property damage, business interruption with compensation for lost income and liability to third parties. ACB offers negotiation support, assisting in negotiations with contractors, lenders and their advisors, ensuring that clients/investors do not take on unnecessary and expensive liabilities. An adequate structure of the insurance program and the optimization of insurance costs are the focus of our care for our clients.

- Investors in Serbia are becoming increasingly aware of the importance of insurance in the development, construction and operation phases of RES projects. There is a positive trend in the understanding of insurance as a form of business security and protection. Changes in the business environment, such as technological progress and increased awareness of ESG issues, contribute to the increase of awareness about insurance. Investors understand that insurance can provide reimbursements that won`t slow down or jeopardize their business, but enable them to have continuity and service costs.

- ACB plans to continue training through the exchange of knowledge and active participation in conferences, seminars, active workshops as well as insurance and reinsurance academies. Conferences with the topic of RES provide an opportunity for sharing expertise and contribution to further development of this area in Serbia.

New projects we are engaged in include wind farms such as Chibuk 2 with a capacity of 154MW, which has been under construction since July 2024, and a wind power plant with a capacity of 300MW, which is in preparation stage.

There is room for further development of the offer of insurance products, especially in the area of ​​solar power plants. ACB notes the exponential growth of renewable energy capacity, such as solar power plants and wind farms, which is key to a sustainable future. Further development of the insurance product offering includes specialized products for small solar power plants for own production and consumption, as well as new products such as Cyber ​​insurance and Parametric insurance. ACB is planning to improve its offering through market research and creating client needs, providing optimal risk insurance solutions in the field of renewable energy

- There is still a trend that insurance is perceived as an expense, but ACB through its activities is working to increase awareness of the importance of insurance, both among investors in RES projects, and among citizens and business entities. Through education, providing quality services, and a transparent relationship with clients, ACB helps clients understand insurance as a form of business security and protection. For example, ACB regularly monitors all market trends in order to find optimal insurance solutions and provided support to clients in the shortest possible time. Insurance enables continuity of operations and compensation which help service expenses, such as loan installments. ACB organizes business meetings and participates in gatherings, where the importance of insurance and its role in protecting investments, project and business sustainability is discussed. Through a partnership with the Aon Corporation, ACB leverages a global network and local knowledge

in order to combine international practice with local understanding of the market and client needs.

- The biggest potential for further development in the Serbian market have insurance areas related to renewable energy sources. ACB plans to improve its offer through specialized products and services, such as Cyber ​​Insurance and Parametric Insurance.

In the conditions of the pandemic and the increase in the use of digital technologies, cyber attacks have become more common, which has boosted the demand for cyber insurance. ACB plans to improve its offer in this area through cooperation with insurers and spreading awareness about the opportunities and challenges of obtaining cyber insurance.

Parametric insurance, which enables quick payment of compensations based on predefined parameters, such as weather conditions or natural disasters. This type of insurance, in addition to being applied in RES, is especially useful for farmers and companies that face high risks of natural disasters.

New insurance products and their marketing, with prior research and creation of market needs, will contribute to the further growth and development.

However, in closing, I have to mention that the Serbian insurance market has significant potential for further development in voluntary health insurance (VHI) which is experiencing great growth and is increasingly in demand, particularly in the IT and financial sectors. ACB is the leading broker in this area, with over EUR 11.5 million in premiums in the client portfolio.