Munich Re Specialty Group, the parent of Munich Re Syndicate, announced the launch of Green Solutions, a portfolio of insurance products and services that supports its customers’ net zero ambitions.
The portfolio launches with an ambition to attain a leading market share of commercial specialty and primary green insurance risks by 2030.
Green Solutions is a natural and planned next step following Munich Re’s Oil and Gas investment and underwriting guidelines and supports the company’s sustainability approach.
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This offering sets a clear pathway for Munich Re Specialty Group to become the partner of choice for sustainable risks in the London and Lloyd’s market, the company said.
The portfolio will bring together the Specialty Group’s existing “Green Technology” products paired with a commitment to develop, expand and introduce new risk solutions. Leveraging the company’s global distribution network, Green Solutions has the ability to support and have a meaningful impact on the transition to a net zero economy.
In order to meet the scale of growth ambitions targeted for Green Solutions, the portfolio will target sectors with proven and emerging technologies in areas such as photovoltaic, wind, carbon capture and energy storage. In addition to its product offering, the Green Solutions team will connect its customers to Munich Re Specialty Group’s relevant intangible asset products such as cyber.
Clean energy and fossil fuel investment levels are beginning to match that of green technologies for the first time, said Munich Re, quoting a report from BloombergNEF, titled Energy Transition Investment Trends 2022.
As demand for new products is quickly increasing, supply is falling behind. By 2025, it is estimated there will be a $100 billion GWP protection gap for environmental insurance risks, according to a PwC report. To effectively narrow this gap, insurers must adapt and expand their offerings and enable new risk transfer mechanisms, Munich Re noted.
Through its existing innovation and energy business unit, Munich Re holds a track record of more than twelve years of absorbing technical risks and enabling renewable entrepreneurs to grow their businesses. Backed by our warranties, Munich Re already underwrites 55 gigawatts of renewable energy production and storage. To utilise existing knowhow, skills and to avoid overlap, the Green Solutions offering will align with Munich Re’s Facultative & Corporate (F&C) business unit and group entities such as Hartford Steam Boiler (HSB) which hold strengths in risk transfer solutions, engineering and product development.
A key component of Green Solutions is a commitment to contribute to thought leadership with strategic partners and clients. The offering will bring together data, insights and cross-sector experts to provide a trusted source of knowledge and inform best practice on the sustainability challenges clients face and help catalyse their transition to net zero.
Initially focused on London and Lloyd’s clients, Munich Re Specialty Group will appoint new dedicated underwriting executive and will build an expanded team to support the Green Solutions portfolio.
“Green Solutions specifically targets the E in ESG, and seamlessly aligns with the wider Munich Re Group strategy, as well as underscoring our determination to fulfil our role in supporting the targets of the Paris Climate Agreement,” commented Mike Kerner, member of the Board of Management of Munich Re, responsible for Global Specialty Insurance.
“The new Global Specialty Insurance division has a pivotal role in making Munich Re’s sustainable approach a reality through delivering new products for our customers who are working to deliver net zero for their sector,” Kerner added.
“By applying a solution-based framework to our re/insurance business, we are able to focus on activities which have the potential to contribute to climate change mitigation. The Green Solutions portfolio aims to enable new sustainable technologies and ultimately support our Group ambition to help our clients succeed in a low-carbon economy,” according to Silke Jolowicz, head of Sustainability for Munich Re Group.
“I’m delighted to bring the Green Solutions portfolio together within the group capacity. Over the course of the next year, we are determined to bring our new product lines to our clients as they increasingly and urgently pivot to more sustainable business models,” said Dominick Hoare, group chief underwriting officer for Munich Re Specialty Group.
As part of the Green Solutions product offering, all new business will be weighed against whether it upholds Munich Re’s commitment to the Principles for Sustainable Insurance and whether it is aligned with the Munich Re Low Carbon Solution Framework.
Source: Munich Re
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