Blenheim Partnerships, the specialist underwriting division of White Bear Group, has launched a new political risk insurance solution for the carbon credits market, including cover for CORSIA corresponding adjustments.
According to Blenheim Partnerships, the launch responds to increasing demand for insurance products that support the changing regulatory requirements surrounding carbon credits.
The company said the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), the International Civil Aviation Organization’s global carbon offsetting framework for international aviation, is increasing demand for eligible, high-quality carbon credits while also introducing further compliance and corresponding adjustment requirements.
Blenheim Partnerships has developed SCREW (Sovereign Corresponding Adjustment Revocation & Enforced Withdrawal) to address what the company identifies as a growing need for risk protection in developing markets. Blenheim Partnerships said the product is designed to support participants in carbon markets by providing protection against sovereign and regulatory risks as these markets continue to develop in line with global net zero ambitions.
The company also confirmed that Gold Standard, a leading carbon standard eligible to supply credits under CORSIA, has added SCREW to its list of approved insurance policies.
Led by Ed Parker, Senior Underwriter, Special Risks, at Blenheim Partnerships, the product combines traditional political risk insurance cover with the additional protections required by carbon standards for CORSIA. Blenheim Partnerships said this combined approach provides clients with a comprehensive insurance solution and is the first product of its kind to be offered by a private political risk underwriter.
Parker commented: “Once again it’s clear to see Blenheim Partnerships is leading the market in bringing together political risk expertise and experience in bespoke underwriting to address a clear and growing need in the carbon markets as highlighted by brokers and clients alike. Under the Blenheim banner, our focus is on listening to the market and delivering relevant solutions that reflect both the complexity of carbon credits and the realities of sovereign and regulatory risk.”
Sarah Leugers, Chief Growth Officer at Gold Standard, added: “As demand grows under CORSIA in the coming years, the supply of high-quality eligible credits will also need to scale up. Expanding the pool of approved insurance providers, through recognition of Blenheim’s new policy, is one of the ways in which Gold Standard is helping project developers to supply the CORSIA market from strong foundations.”
