Sustainable Insurer: October 2024 Edition

Welcome to the October edition of Sustainable Insurer, the monthly digest of all the major developments in the industry’s efforts to build a more sustainable future.

A new report by NGO Reclaim Finance has this month claimed that more than half of the Lloyd’s market by premium share is yet to publicly adopt underwriting restrictions for new coal projects, while just five managing agents have also restricted cover for new oil and gas fields.

The activist group has called for all managing agents to publicly rule out providing coverage for new coal projects, new oil and gas fields, and new LNG terminals by 1 January 2025.

In this edition, we also report from a recent Reuters event during which Lloyd’s CEO John Neal confirmed that the Corporation is not considering more stringent underwriting policies around oil and gas infrastructure.

Elsewhere, panellists at an event in London hosted by Better Insurance Network discussed the importance of governance in the ESG space to inform pricing, portfolio strategy and reporting.

Axa XL’s Sam Day noted that while the politicisation of ESG-related data means that it is unlikely to inform pricing of risk, underwriters and brokers are likely to request more specific data points during underwriting assessments in order to build a more bespoke risk profile.

In a separate panel, Novagen Specialty CEO Valeria Del Villano shone a light on the increasing number of renewables-focused MGAs, owing to their ability to underwrite the sector in a more nimble manner.

We also speak to Gus Majed of Paratus after the energy price risk insurer was granted a licence by the Guernsey Financial Services Authority to provide insurance cover to the renewable power industry.

In this month’s Viewpoint, Nick Evans, deputy head of renewable energy at Aviva, outlines the issue of obsolete technology in the wind sector, and how insurers can look to underwrite complex life extensions.

We also bring our latest monthly tracker table of recent announcements and initiatives launched across the sector.

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