AXA XL, a division of AXA, with a prominent presence in the UK, has launched a new product – the Excess Emissions Insurance.
This innovative offering aims to assist marine clients in effectively managing their environmental footprint while promoting action on carbon emissions.
In an era of increased environmental consciousness and responsibility, there’s a mounting pressure on shipping companies to reduce their carbon intensity. AXA XL’s newly launched product seeks to help these companies support the global net-zero ambitions by managing their carbon emissions, especially in cases of unforeseen extended journeys that could lead to additional emissions.
AXA XL is a specialist risk division under the global insurance company AXA. The company focuses on providing insurance solutions for complex risks, including climate change-related risks. With its strong commitment to sustainability and addressing climate change, the company actively contributes to devising innovative and tailored solutions for its clients, particularly in the marine sector.
The Excess Emissions Insurance product is a pioneering offering that indemnifies a vessel’s carbon output in the event of an unforeseen extended journey caused by a covered risk, resulting in additional emissions. Should such an event occur, the policy compensates with voluntary carbon credits equivalent to the excess emissions produced.
The Excess Emissions Insurance product is an extension of AXA XL’s existing marine hull product. This product has been developed in collaboration with ClimateSeed, an impact company specialising in premium carbon removal and avoidance projects. The development was overseen by AXA XL’s in-house Carbon team, a new group tasked with reviewing carbon products and services.
AXA XL is dedicated to consistently developing innovative solutions to better serve and support its clients as they work towards net-zero targets. The company plans to continue exploring alternative ways to partner with clients and respond to their significant challenges over the long term.
AXA XL Head of Marine, UK & Lloyd’s & Global Chief Underwriting Officer, Global Marine Hull, Sundeep Khera, said, “Shipping companies are working hard to reduce the carbon intensity of international shipping, and while carbon credits do not cancel out emissions, projects that generate voluntary carbon credits do contribute to the overall goal of global carbon neutrality. Our Excess Emissions Insurance aims to play an additional role in helping our marine clients to support global net-zero ambitions.”
Sean McGovern, CEO, UK & Lloyd’s, added: “This is a great example of a product innovation initiative becoming reality. The expertise and commitment of our new Carbon team in helping to develop innovative solutions allows us to better serve and support our clients as they work towards net zero targets. We will continue to look at alternative ways to partner with our clients to respond to their biggest challenges over the long term.”
Sebastien Nunes, CEO, ClimateSeed, commented: “To support the Intergovernmental Panel Climate Change’s objective of global carbon neutrality, it is important for an organisation to reduce its emissions in the value chain and contribute to projects that avoid or absorb emissions. We are happy to support AXA XL and its clients in contributing to premium projects that have positive environmental and social impacts”.
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global