AXIS Capital Holdings Ltd. announced it has received in-principle approval from Lloyd’s to launch a syndicate that will focus on providing capacity for new energy projects with a critical role in supporting 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 life cycle 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.

The syndicate brings together existing underwriting expertise in key classes, including in areas in which AXIS already holds a lead position. 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, which support and enable cleaner energy projects. The syndicate will also provide insurance protection for the personnel involved, through professional indemnity and accident and 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 shift to net zero is among the biggest challenges of our age to be undertaken in the world of commerce,” commented Mark Gregory, head of Global Markets, AXIS, in a statement.

“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,” Gregory added.

“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.'”

Syndicate 2050 brings together AXIS’ existing cross-class underwriting and claims expertise in key areas of risk associated with building energy resilience, he said.

“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 added.

Syndicate 2050 will offer the risk protection that businesses, governments and public entities need during every stage of their energy transition lifecycle, including:

• Conception and invention
• Securing financing
• Sourcing and moving goods or materials
• Construction
• Operations and maintenance
• Dismantling and repurposing

Source: AXIS Capital Holdings