On 20 June 2016, the law on the ‘blue economy’ which introduces an insurance regime tailor-made for Marine Renewable Energy Installations (MRE) was finally enacted (after being adopted by the senate). In February, we published a detailed briefing on the draft law1.
Article 84 of the law on the ‘blue economy’ now classifies MRE installations as “large risks” as defined by decree in the Conseil d’Etat, and it excludes them from the mandatory regime applicable to terrorist risks and natural catastrophes. These changes will therefore allow the market freely to fix the terms of cover for such installations in order to meet the desired objective of reducing the insurance cost for MRE projects, as well as supporting development of this sector in France. As “large risks”, these installations can now choose the law applicable to their insurance policy and are no longer required to make them subject to French law.