AXIS unveils first Lloyd’s syndicate for new energy projects
AXIS Capital has secured in-principle approval from Lloyd’s to establish a new syndicate dedicated to providing capacity for new energy projects.
Through Energy Resilience Syndicate 2050, AXIS said it 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.
The syndicate brings together existing underwriting expertise in key classes. It claims this will be the first syndicate to specifically focus on insuring organizations’ energy transition journeys, in line with their actions to achieve net zero by 2050, which is crucial for meeting the goals of the Paris Agreement.
Broad in scope, Syndicate 2050 will typically underwrite the construction and operation of technologies and projects that support energy transition. In addition, 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 transition2. Pending final approval by Lloyd’s, AXIS Energy Resilience Syndicate 2050 aims to begin underwriting on April 1, 2024.
“The shift to net zero is among the biggest challenges of our age to be undertaken in the world of commerce,” said Mark Gregory, head of Global Markets, AXIS. “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 recognize that organizations’ 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 minimizing potential coverage gaps or underinsurance.”
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