Lloyd's has granted Axis Capital Holdings an in-principle approval for a new syndicate focused on new energy products, as stated in a news release announcing the initiative. The Energy Resilience Syndicate 2050 will provide access to specialist insurance solutions.
The newly proposed syndicate will leverage existing underwriting expertise and concentrate on insuring organizations' energy transition towards net zero by 2050. It will primarily focus on the construction and operation of technologies and projects that support clean energy transitions, according to the news release announcing the approval of the new syndicate.
"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 with Lloyd’s commitment to supporting an ‘urgent and orderly transition to net zero’," said Mark Gregory, head of global markets at AXIS.
Axis offers insurance in several categories including Cyber and Technology Errors & Omissions (E&O), with subcategories such as cyber insurance, technology E&O, Axis Cyber Services, and AXIS Cyber Squad. Additionally, it provides management liability and professional liability coverage. On its reinsurance side, Axis focuses on sectors like agriculture, aviation, casualty, credit and surety, marine, mortgage, and property insurances as indicated on their home page.
Syndicate 2050 aims to support businesses, public entities, and governments at every stage of their energy transition - from conception and invention to dismantling and repurposing. However, final approval is still pending for Syndicate 2050 along with permission for underwriting. The company is currently working towards meeting the necessary financial and operational criteria.
"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," Gregory said in the news release announcing the partial approval and preparation to launch the new syndicate.