Specialist managing general underwriter, New Energy Risk (NER), a wholly owned division of Paragon Insurance Group, and insurer Westfield Syndicate are launching a new Lloyd’s lineslip focused on providing technology performance insurance and other insurance products to the energy transition space.
Through this additional capacity under the lineslip, NER will expand its platform to accelerate innovation in the energy transition space and help its clients meet the world’s climate and sustainability targets.
The capacity will be available, alongside NER’s existing capacity arrangements, to service demand arising in areas such as fuel cells, hydrogen, low-carbon fuels, carbon capture and U.S. tax credits.
Tom Dickson, Chief Executive Officer, New Energy Risk, commented, “With the passage of the Inflation Reduction Act in the U.S. and similarly ambitious support in the U.K., Europe and elsewhere, the energy transition is at an inflection point.
“Since 2013, NER has enabled over $4B of capital deployments and almost a quarter of that has been in the past 12 months. NER is proud to be operating with Lloyd’s and its history of innovation building the partnerships necessary to continue supporting this trend and bringing impactful technology to the market at scale.”
Rachel Turk, Chief Underwriting Officer, Lloyd’s, added, “Insurance has a vital role to play in creating the environment in which new lower carbon technologies can reach scale and commercial viability and we are very supportive of thoughtful and disciplined underwriting that supports the goals of the global energy transition.
“We are delighted to see the allocation of risk capital to businesses focusing on the transition to renewable energy and with the recent launch of the TCX transition risk code, this will enable the market to further lean into the opportunities that transitioning to a lower carbon economy brings.”
Guy Carpenter was the sole placing broker responsible for securing the required capacity.
Henry Sanderson, Head of Innovation; Emerging Risks, Global Specialties, Guy Carpenter, commented, “This new lineslip will enable New Energy Risk to provide insurance solutions to clients which encourages additional capital to develop renewable clean energy technologies.
“The Lloyd’s market is an efficient way for NER to use the lineslip to service growing insurance demand. Guy Carpenter is committed to helping clients source capacity for innovative solutions in a new era of risk.”
Jeremy Shallow, Deputy Active Underwriter, Westfield Specialty Syndicate 1200 added, “New Energy Risk are bridging the gap between insurance and the deployment of breakthrough technologies in renewable energy and at Westfield Specialty we are delighted to be able to support this.
“Tom and his team have a sophisticated approach to the challenges presented by new technologies and we are excited by the prospects of being a part of the transition journey alongside New Energy Risk.”
