Sustainable Insurer: May 2024 Edition

Welcome to the May edition of Sustainable Insurer, in which we reflect on some of the major developments of recent weeks.

Lloyd’s has signalled its intent to play a greater role in insuring the energy transition with the launch of the new TCX transition risk class, a move aimed at encouraging more syndicates to deploy capacity in the space as part of a drive to build critical mass.

This month also saw further protests at the annual British Insurance Brokers’ Association conference. We spoke to the activists to hear more on what they want from the industry.

In an interview we speak to MS Amlin’s Amir Sethu on the need for carriers to adjust natural catastrophe models to better capture acute climate risk.

Our main feature this month is a special report on insurance for carbon markets.

Buyers, intermediaries and sellers of carbon credits face unique risks that are not suitably covered by conventional insurance products.

However, an increasing number of companies are now offering insurance products to serve the carbon markets, with Aon, Howden and CFC among those to have unveiled new launches in recent months.

With the carbon insurance opportunity expected to develop into a $1bn GWP market by 2030, we examine how distinct categories of carbon insurance are emerging.

We examine the steps taken to date by the first movers in the space and look ahead to how it may evolve in the future.

Visit sustainable-insurer.com for regular updates as the industry continues its drive for a more sustainable future.