Insurers can tackle climate change, Insurance Summit told

The insurance industry can play an important role in helping society become far more resilient to climate change, according to a number of speakers at the Insurance Summit, which took place on October 18 and was hosted by the Italian Insurance Association (ANIA), in partnership with the Italian G20 Presidency and in collaboration with the Global Federation of Insurance Associations (GFIA).

The event examined the contribution that insurers can make to facilitate the G20’s priorities. Keynote speeches and panels discussed the role of insurers regarding sustainable investment, climate change and the development of integrated and resilient welfare systems.

ANIA president Maria Bianca Farina said: “I am very proud of the outcome of the Insurance Summit. The insurance sector can and must play a crucial role in the ongoing economic recovery and in the transition of our society towards a model more resilient to climate change and to exceptional events, such as pandemics.

“Our industry has a key role to play in facilitating more protection through an integrated welfare system that involves both the public and the private sectors, and which takes into consideration the new intergenerational balances and the risks for our health.

“I would like to thank the many institutional and industry participants who have taken part in our discussions today. Insurers are ready to do their part to overcome the ongoing crisis and to do their utmost to better protect everyone in the face of future challenges.”

GFIA president Don Forgeron added: “Global insurers were among the first to model climate risk and to sound the alarm about the potential impact of human-influenced change. Today, we are on the front lines as physical climate risks rapidly escalate worldwide in the form of heat events, wildfires, floods, and tropical storms.

“Beyond this role, the insurance industry has a pivotal role to play in facilitating our collective transition to a sustainable economy. Let there be no doubt: there is enormous potential in sustainable finance. Of course, transformation on such a massive scale won’t be easy, and it won’t happen overnight.

“But with leadership, with determination, and with a consistent focus on the benefits of doing things differently—and doing them better—we can over time evolve our economies and our way of living.”

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‘Buoyant’ market conditions in Europe prompt new launch

The favourable market conditions in Europe have prompted another firm to establish a presence in the market. Coverys European Holdings, an underwriting vehicle that invests in speciality managing general agencies (MGAs) in Europe and the UK, has established a new underwriting agency in Barcelona, Spain, underwriting a suite of casualty products including professional indemnity, directors and officers (D&O), medical malpractice, and cyber.

AEC Europe joins Coverys’ growing pan-European network of casualty MGAs, which includes casualty underwriting offices launched or acquired in Italy, Ireland and the UK.

The new MGA will offer instant quotation, electronic placement, improved policy administration, and real-time risk and claims insights to deliver an enhanced customer experience. The capacity will be provided by a select panel of insurers, reinsurers and Lloyd’s syndicates.

Doug Robare, chief underwriting officer of Coverys European Holdings, said: “We are delighted to expand our European network yet again, and embrace the clear opportunity to present a real, dynamic challenge to the status quo.

“The sum of technology and the local team’s expertise will quickly establish AEC Europe as a leading casualty insurance provider across the continent. Under Ana de Oliveira’s expert leadership, we have built a team of skilled underwriters who have identified gaps in their chosen markets. They will exploit those opportunities with their substantial expertise, underpinned by supportive capital and cutting-edge technology.”

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Allianz nudges its suppliers to embrace ESG

Allianz Insurance has launched a sustainable procurement charter in a bid to encourage its suppliers to adopt and develop better environmental, social and corporate governance (ESG) practices.

The sustainable procurement charter is designed for suppliers who have a contractual relationship with Allianz in the UK and have a spend profile of more than £20,000 ($27,500). It will act as guidance for internal buyers and suppliers, Allianz said.

For future tender assessments, the commercial insurer will apply a minimum weighting of 10 percent to ESG factors, as a way of prioritising suppliers who have embedded sustainable and ethical practices within their organisation.

With this charter, Allianz said it aims to encourage suppliers to reduce carbon emissions, recycle waste, use renewable energy and consider biodiversity elements for their premises. Besides these environmental commitments, it would like suppliers to set themselves social targets, such as paying all employees the national living wage, reducing pay gaps and providing fair opportunities to everyone.

In terms of governance goals, it encourages them to set whistleblowing mechanisms into their business practices and to ensure all tendering activities are open and transparent. While these targets aren’t binding, suppliers are encouraged to embed them in their operations and supply chain, ensuring ESG is a core consideration. They should be able to track their own performance in a reportable format, which could then be used to drive better outcomes, the insurer said.

Oleh Melnyk, head of procurement and property at Allianz Insurance, commented: “We need to act against climate change and we can’t act alone, we need to involve our supplier partners. This charter will help develop a shared mindset with them, creating a fairer and more transparent environment.

“We want to be market leaders in sustainable procurement; that’s part of our ESG ambitions.”

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Specialist ESG syndicate launches in Lloyd’s

Specialist insurer Beazley has received “in principle” approval from Lloyd’s of London to establish Syndicate 4321 and start underwriting from January 1, 2022.

Once fully approved the syndicate will focus exclusively on offering additional capacity to businesses that perform well against environmental, social, and corporate governance (ESG) metrics, and will be led by Will Roscoe, head of the market facilities division.

Syndicate 4321, which has been established under the Lloyd’s Syndicate In A Box (SIAB) framework, will operate a consortium arrangement led by Syndicates 623/2623. Eligible clients that can meet the standards of the ESG rating scoring criteria will be able to access additional capacity from Syndicate 4321.

Syndicate 4321 will underwrite on a multiline basis, to ensure diversification and balance. In the initial phase the syndicate will accept D&O, healthcare, financial institutions, London Market US cyber, property, marine hull, marine cargo and aviation business. Beazley said all premiums received by Syndicate 4321 will be invested responsibly, in line with Beazley’s Responsible Investment Strategy.

Adrian Cox, chief executive officer of Beazley, said: “By creating the first specialist ESG syndicate at Lloyd’s, Beazley is taking an early step in delivering our commitment to embed ESG across our organisation, including our underwriting.

“Beazley has a track record of creating innovative underwriting vehicles and Syndicate 4321 delivers this to clients that have already achieved ESG standards. We continue to support all our clients, at whatever stage they are in their ESG journey, with meaningful risk management and insurance capacity.”

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