Global specialty underwriter and provider of re/insurance solutions, AXIS Capital Holdings Limited, has received in-principle approval from Lloyd’s to establish a new syndicate dedicated to providing capacity for new energy projects.
Through Energy Resilience Syndicate 2050, which will have a critical role in supporting the transition to net zero and building an economically sustainable world, AXIS will provide a single access point to specialist insurance solutions.
Syndicate 2050 has been developed by AXIS in support of Lloyd’s recognition of the opportunity that protecting the long-term journey to net zero represents for underwriters and its goal to be the insurer of the transition.
Pending final approval by Lloyd’s, AXIS Energy Resilience Syndicate 2050 aims to begin underwriting on April 1st, 2024.
Mark Gregory, Head of Global Markets, AXIS, commented, “The shift to net zero is among the biggest challenges of our age to be undertaken in the world of commerce. There is a considerable opportunity for AXIS and the market to step up and demonstrate that we can develop the coverages needed to support energy transition.
“Through AXIS Energy Resilience Syndicate 2050, we aim to lead the market in offering specialty insurance solutions that enable the investment, innovation, and technological developments necessary to develop cleaner, more resilient sources of energy. Our approach is firmly aligned to the commitment made by Lloyd’s to supporting an ‘urgent and orderly transition to net zero’.”
The syndicate brings together existing underwriting expertise in key classes and is the first to specifically focus on insuring organizations’ energy transition journeys, to help achieve the goals of the Paris AGreement and to achieve net zero by 2050.
Syndicate 2050 is broad in scope and will typically underwrite the construction and operation of technologies and projects that support energy transition, says the firm. In addition, it will insure activities, such as transit, storage, and financing, that support and enable cleaner energy projects.
The syndicate will also provide insurance protection for the personnel involved, through professional indemnity and accident & health coverages.
Gregory added: “We recognize that organizations’ energy transition brings a high complexity of risk that requires a holistic insurance response, which evolves over the lifecycle of a customer’s journey. To meet this need, Syndicate 2050 brings together our existing cross-class underwriting and claims expertise in key areas of risk associated with building energy resilience. The syndicate will deliver an efficient one-stop channel for brokers and customers to access joined-up, long-term risk protection designed around customers’ needs, and minimizing potential coverage gaps or underinsurance.”
Syndicate 2050 will offer the risk protection that businesses, governments, and public entities need during every stage of their energy transition lifecycle. Ahead of launching Syndicate 2050, AXIS is continuing to work towards meeting further financial and operational criteria to obtain Lloyd’s final approval and permission to underwrite.
