AXA XL in the UK has launched its Excess Emissions Insurance product, which is set to help marine clients manage their environmental footprint and support action on carbon emissions.
In partnership with ClimateSeed – an impact company that provides premium carbon removal and avoidance projects – the Excess Emissions Insurance product has been developed with AXA XL’s in-house Carbon team.
The team is a newly formed group which will review carbon products and services developed both internally and through the London Market.
According to the announcement, Excess Emissions Insurance, which is an extension to AXA XL’s existing marine hull product, indemnifies a vessel’s carbon output in the event of an unforeseen extended journey, caused by a covered risk, which results in additional emissions.
Following such an event, the policy pays out with voluntary carbon credits equal to the amount of excess emissions emitted.
“Shipping companies are working hard to reduce the carbon intensity of international shipping, and while carbon credits do not cancel out emissions, projects that generate voluntary carbon credits do contribute to the overall goal of global carbon neutrality,” said Sundeep Khera, Head of Marine, UK & Lloyd’s & Global Chief Underwriting Officer, Global Marine Hull.
“Our Excess Emissions Insurance aims to play an additional role in helping our marine clients to support global net zero ambitions.”
Sean McGovern, CEO, UK & Lloyd’s, added: “This is a great example of a product innovation initiative becoming reality. The expertise and commitment of our new Carbon team in helping to develop innovative solutions allows us to better serve and support our clients as they work towards net zero targets. We will continue to look at alternative ways to partner with our clients to respond to their biggest challenges over the long term.”
Sebastien Nunes, CEO, ClimateSeed, commented: “To support the Intergovernmental Panel Climate Change’s objective of global carbon neutrality, it is important for an organization to reduce its emissions in the value chain and contribute to projects that avoid or absorb emissions.
“We are happy to support AXA XL and its clients in contributing to premium projects that have positive environmental and social impacts”.
