Specialist insurer and reinsurer Hiscox is taking steps to capitalise on global economies’ increasing interest and investment in transition and green technologies with a new environmental, social and governance (ESG) syndicate, the company revealed today.
The new discreet sub-syndicate will have a focus on ESG-positive risks and will be nested with Syndicate 33 and lean on its existing stand capacity, writing incremental risks.
Hiscox states that it will leverage existing relationships complemented by developing deep in-house expertise in renewables and power, including things like electric vehicles and infrastructure.
To achieve scale, Hiscox expects its new ESG syndicate to partner with external capital.
Speaking during the company’s ongoing full year 2022 results presentation, Chief Executive Officer (CEO), Aki Hussain, commented on the launch of the syndicate.
“Now, we see this as being a significant long-term growth opportunity, as around the globe economies increasingly invest in transition and green technologies,” said Hussain. “We will stay focused on our specialist areas, in those areas that we understand and know well and combine that specialism with investing in new capabilities, which we will build over time.”
He explained that Hiscox will be leveraging a third-party screening tool to ensure each of the risks meets the ESG characteristics required by the syndicate.
“In time, we’ll be marketing this syndicate to third-party capital providers, who want access to clients with ESG-positive characteristics and access to Hiscox’s first class underwriting,” said Hussain.
“This is in the early stages of development, it is a really exciting development for us. This is a client-centric proposition, as opposed to a customer-centric proposition and we’re all pretty excited about it, so watch this space,” he added.
