Blenheim Partnerships, the specialist underwriting arm of White Bear Group, has launched a new political risk insurance solution for the carbon credits market, including adjustments for CORSIA.
According to Blenheim Partnerships, the launch is in response to growing demand for insurance products that support changing regulatory requirements around carbon credits.
The company said the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), ICAO’s global carbon offsetting framework for international aviation, is increasing demand for qualified, high-quality carbon credits while also introducing further compliance and consequential adjustment requirements.
Blenheim Partnerships developed SCREW (Sovereign Responsive Adjustment Revocation and Enforcement Withdrawal) to meet what the firm sees as a growing need for risk protection in developing markets. Blenheim Partnerships said the product is designed to support carbon market participants by providing protection against sovereign and regulatory risks as carbon markets continue to evolve in line with global net zero targets.
The company also confirmed that Gold Standard, the leading carbon standard eligible for credits under CORSIA, has added SCREW to its list of approved insurance policies.
The product, led by Ed Parker, senior underwriter in Blenheim Partnerships’ Special Risks Group, combines traditional political risk insurance with the additional protection required by the CORSIA Carbon Standard. Blenheim Partnerships said this portfolio approach provides clients with a comprehensive insurance solution and is the first product of its kind to be offered by a private political risk underwriter.
Parker commented: “It is clear that Blenheim Partnerships is once again leading the market, bringing together political risk expertise and bespoke underwriting experience to meet the clear and growing needs of the carbon market, highlighted by brokers and clients. Under the Blenheim banner, our focus is on listening to the market and delivering relevant solutions that reflect the complexities of carbon credits and the realities of sovereign and regulatory risk.”
Sarah Leugers, chief growth officer at Gold Standard, added: “As demand grows under CORSIA in the coming years, the supply of high-quality eligible credit will also need to expand. Expanding the pool of approved insurance providers by endorsing Blenheim’s new policy is one of the ways Gold Standard is helping project developers provide a solid foundation for the CORSIA market.”
