AXA XL in the UK has introduced the Excess Emissions Insurance product, supporting marine clients in managing their environmental impact and addressing carbon emissions. Developed in collaboration with ClimateSeed, this product is a result of AXA XL’s in-house Carbon team’s efforts, a newly formed group responsible for reviewing carbon-related offerings developed internally and in the London Market.
The Excess Emissions Insurance, an extension to AXA XL’s existing marine hull product, provides coverage for a vessel’s carbon output in the event of an unforeseen extended journey caused by a covered risk, leading to additional emissions. In such cases, the policy offers compensation in the form of voluntary carbon credits, equivalent to the excess emissions emitted.
Sundeep Khera, Head of Marine, UK & Lloyd’s & Global Chief Underwriting Officer, Global Marine Hull, 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, said: “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”.