AXIS to launch energy resilience Syndicate 2050 at Lloyd’s
Bermuda-based AXIS Capital Holdings has secured in-principle approval from Lloyd’s to establish a new syndicate dedicated to providing capacity for new energy projects intended to support the transition to net zero.
Through Energy Resilience Syndicate 2050, AXIS will provide a single access point to specialist insurance solutions for cross-class risks over the lifecycle of projects and activities associated with replacing or displacing fossil fuels through lower-carbon alternatives and supporting energy resilience during the transition phase.
Pending final approval by Lloyd’s, AXIS Energy Resilience Syndicate 2050 aims to begin underwriting on April 1, 2024. AXIS head of upstream energy Elliot Lyes will serve as active underwriter for Syndicate 2050 and work alongside a cross-class team of underwriters to provide specialty insurance solutions tailored to the risks associated with replacing or displacing fossil fuels through lower-carbon alternatives.
AXIS said this will be the first syndicate to specifically focus on insuring organisations’ energy transition journeys, in line with their actions to achieve net zero by 2050 to meet the goals of the Paris Agreement.
Syndicate 2050 will typically underwrite the construction and operation of technologies and projects that support energy transition. Additionally, the Syndicate will insure activities, such as transit, storage, and financing, that support and enable cleaner energy projects. The syndicate will also provide insurance protection for the personnel involved, through professional indemnity and accident & health coverages.
Syndicate 2050 has been developed by AXIS in support of Lloyd’s recognition of the opportunity that protecting the long-term journey to net zero represents for underwriters and its goal to be the insurer of the transition, the company explained.
Ahead of launching Syndicate 2050, AXIS is continuing to work towards meeting further financial and operational criteria to obtain Lloyd’s final approval and permission to underwrite.
Mark Gregory, head of global markets, AXIS, said: “The shift to net zero is among the biggest challenges of our age to be undertaken in the world of commerce. There is a considerable opportunity for AXIS and the market to step up and demonstrate that we can develop the coverages needed to support energy transition. Through AXIS Energy Resilience Syndicate 2050, we aim to lead the market in offering specialty insurance solutions that enable the investment, innovation, and technological developments necessary to develop cleaner, more resilient sources of energy. Our approach is firmly aligned to the commitment made by Lloyd’s to supporting an ‘urgent and orderly transition to net zero’.”
Gregory added: “We recognise that organisations’ energy transition brings a high complexity of risk that requires a holistic insurance response, which evolves over the lifecycle of a customer’s journey. To meet this need, Syndicate 2050 brings together our existing cross-class underwriting and claims expertise in key areas of risk associated with building energy resilience. The syndicate will deliver an efficient one-stop channel for brokers and customers to access joined-up, long-term risk protection designed around customers’ needs, and minimising potential coverage gaps or underinsurance.”
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