Global reinsurer SCOR and multinational insurer AXA have joined forces to form a new Lloyd’s of London consortium aimed at closing critical financing gaps by reducing the risk of investment opportunities associated with ecological restoration projects.
By providing specialized insurance, the consortium intends to free up the funds necessary to restore ecosystems that have been degraded, damaged or destroyed.
The consortium will underwrite SCOR’s restoration product, which provides coverage for the phases of ecological restoration projects dedicated to establishing conditions for restoration.
Jean-Paul Conoscente, CEO of SCOR P&C, commented: “Restoration increases the likelihood of successful completion of ecological restoration projects and provides greater project confidence.
“By partnering with AXA, we can expand our impact and help solve one of the most pressing environmental challenges of our time. This partnership reflects our shared commitment to healthy ecosystems and innovative solutions designed to support the long-term well-being of society.”
This launch represents the next step in the development of SCOR’s NatReCo (Nature Recovery and Conservation) programme. NatReCo was originally launched in May 2024 to develop insurance solutions that support natural recovery and rehabilitation.
The syndicate will be led by Lloyd’s SCOR’s Syndicate 2015, managed by SCOR Management Agency Ltd, and supported by Lloyd’s AXA XL Syndicate 2003.
Henry Mumme-Young, chief underwriting officer at SCOR UK and active underwriter at SCOR Syndicate 2015, said: “The formation of this syndicate, led by SCOR Syndicate, reflects our commitment to taking action for society, enabling insurance to play a meaningful role in addressing environmental challenges and supporting long-term ecological resilience.”
Etienne Champion, chief underwriting officer of AXA Property & Casualty Commercial Group, said: “This product is a logical continuation of AXA’s environmental commitment. With SCOR, we take a further step: providing a solution that concretely secures nature restoration projects and translates our commitment into tangible action to support natural capital.”
“Conserving biodiversity plays an important role for economies: it is estimated that about 50% of the world economy depends directly or indirectly on healthy ecosystems, making the protection of ecosystems a strategic priority for all economic actors.”
The companies emphasized that by combining capacity and global reach, SCOR and AXA will be able to service larger and more complex projects globally.