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Munich Re Specialty – Global Markets, Syndicate

Munich Re Specialty Group reveals Green Solutions portfolio to support London and Lloyd’s market customers’ sustainability ambitions

2023/05/03

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    • Green Solutions, a portfolio of products and services, will aim to capture a leading market share of green commercial specialty and primary insurance risks by 2030.
    • Operated through a new underwriting division within Munich Re Specialty Group, the Green Solutions portfolio will expand and attract new business while also serving and developing existing renewable products.
    • With a decade of risk transfer expertise in ‘Green Technology’ and over 55 gigawatts of renewable energy currently under its management, Munich Re Group is well prepared to support customers’ transition to a clean energy future. Green Solutions supports Munich Re’s Ambition 2025 and aligns to its overall sustainability strategy.

    Munich Re Specialty Group, the parent of Munich Re Syndicate, has today announced the launch of Green Solutions, a portfolio of insurance products and services that supports the execution of its customers’ net zero ambitions. The portfolio launches with an ambition to attain a leading market share of commercial specialty and primary green insurance risks by 2030.

    Green Solutions is a natural and planned next step following Munich Re’s Oil and Gas investment and underwriting guidelines and supports the company’s sustainability approach. This offering sets a clear pathway for Munich Re Specialty Group to become the partner of choice for sustainable risks in the London and Lloyd’s market. The portfolio will bring together the Specialty Group’s existing ‘Green Technology’ products paired with a commitment to develop, expand and introduce new risk solutions. Leveraging the company’s global distribution network, Green Solutions has the ability to support and have a meaningful impact on the transition to a net zero economy.

    Clean energy and fossil fuel investment levels are beginning to match that of green technologies for the first time*. As demand for new products is quickly increasing, supply is falling behind. By 2025, it is estimated there will be a $100 billion GWP protection gap for environmental insurance risks**. To effectively narrow this gap, insurers must adapt and expand their offerings and enable new risk transfer mechanisms.

    In order to meet the scale of growth ambitions targeted for Green Solutions, the portfolio will target sectors with proven and emerging technologies in areas such as photovoltaic, wind, carbon capture and energy storage. In addition to its product offering, the Green Solutions team will connect its customers to Munich Re Specialty Group’s relevant intangible asset products such as cyber.

    Through its existing innovation and energy business unit, Munich Re holds a track record of more than twelve years of absorbing technical risks and enabling renewable entrepreneurs to grow their businesses. Backed by our warranties, Munich Re already underwrites 55 gigawatts of renewable energy production and storage. To utilise existing knowhow, skills and to avoid overlap, the Green Solutions offering will align with Munich Re’s Facultative & Corporate (F&C) business unit and Group entities such as Hartford Steam Boiler (HSB) who hold strengths in risk transfer solutions, engineering and product development.

    A key component of Green Solutions is a commitment to contribute to thought leadership with strategic partners and clients. The offering will bring together data, insights and cross-sector experts to provide a trusted source of knowledge and inform best practice on the sustainability challenges clients face and help catalyse their transition to net zero.

    Initially focused on London and Lloyd’s clients, Munich Re Specialty Group will appoint new dedicated underwriting executive and will build an expanded team to support the Green Solutions portfolio.

    Mike Kerner, Member of the Board of Management of Munich Re, responsible for Global Specialty Insurance, said: ‘Green Solutions specifically targets the E in ESG, and seamlessly aligns with the wider Munich Re Group strategy, as well as underscoring our determination to fulfil our role in supporting the targets of the Paris Climate Agreement. The new Global Specialty Insurance division has a pivotal role in making Munich Re’s sustainable approach a reality through delivering new products for our customers who are working to deliver net zero for their sector.’

    Silke Jolowicz, Head of Sustainability for Munich Re Group, said: ‘By applying a solution based framework to our (re)insurance business, we are able to focus on activities which have the potential to contribute to climate change mitigation. The Green Solutions portfolio aims to enable new sustainable technologies and ultimately support our Group ambition to help our clients succeed in a low-carbon economy.’

    Dominick Hoare, Group Chief Underwriting Officer for Munich Re Specialty Group, said: ‘I’m delighted to bring the Green Solutions portfolio together within the Group capacity. Over the course of the next year, we are determined to bring our new product lines to our clients as they increasingly and urgently pivot to more sustainable business models. Munich Re Specialty Group’s underwriting excellence, strong market presence and trusted brand paired with our wide distribution footprint means we have the credentials to deliver on our aim of being the partner of choice for the transition to net zero.’

    Notes to editors

    * BloombergNEF Energy Transition Investment Trends 2022 report

    ** Estimation taken from slide 8 of PwC’s Insurance 2025 and Beyond report combined with potential share of environmental risks following interviews with market practitioners

    1. As part of the Green Solutions product offering, all new business will be weighed against whether it upholds Munich Re’s commitment to the Principles for Sustainable Insurance and whether it is aligned with the Munich Re Low Carbon Solution Framework.
    2. Learn more about Munich Re’s sustainability approach and Ambition 2025.
    3. Green Solutions is used to describe a collection of potential services and/or product offerings that may involve various entities within the corporate group of Munich Re AG and/or the Munich Re Specialty Group* and potentially utilise a variety of distribution channels.

    a.     *Munich Re Specialty Group Ltd is registered in England: 03399109, St Helens 1 Undershaft, London, EC3A 8EE.

    b.     Munich Re Specialty Group Ltd comprises a number of legal entities including the following regulated entities, some of which may be involved in the Green Solutions Initiative:

    i.        Munich Re Syndicate Ltd is registered in England: 01328742, St Helens 1 Undershaft, London, EC3A 8EE. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (FRN: 204864).

    ii.       Munich Re Specialty Insurance (UK) Ltd is registered in England: 01262636, Union, 2-10 Albert Square, Manchester, M2 6LW. Authorised and regulated by the Financial Conduct Authority (FRN: 310539).

    iii.      NMU, GrovesJohnWestrup, GJW Direct, are trading names of Munich Re Specialty Insurance (UK) Limited who are authorised and regulated by the Financial Conduct Authority.

    iv.      Munich Re Risk Solutions Ireland Ltd is regulated by the Central Bank of Ireland. Registration number 630744 with a registered Office at Asgard House, 19/20 City Quay, Dublin 1, D02 K744.

    c.     HSB Engineering Insurance Limited, registered in England and Wales: 02396114, Chancery Place, 50 Brown Street, Manchester M2 2JT. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (FRN: 202738)

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    Bud Hedges
    Bud Hedges
    UK Media Relations and Content Strategist