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Marine Insurance framework now includes decarbonisation goals

Race to net zero receives support from the Poseidon Principles for Marine Insurance

The Poseidon Principles for Marine Insurance have incorporated carbon emissions to support the industry’s green transition. This initiative makes marine insurance the first line of business to establish a sector-specific methodology to support the ambition of the Net-Zero Insurance Alliance (NZIA).

Decarbonisation takes precedence
The urgency of the climate crisis hit home when the COP26 summit ended badly. That catalysed the Poseidon Principles’ move, led by six reputable marine insurers. The founding insurers included Swiss Re, Gard, Hellenic Hull Management, SCOR, Victor International, and Norwegian Hull Club.

Patrizia Kern, Marine Head at Swiss Re Corporate Solutions and Chair of the drafting committee for the association expressed enthusiasm. “The transition to net zero is a massive endeavour, and we appreciate the efforts of the industry. As risk managers, insurers and investors, we have a key role in supporting the transition to a net-zero economy. The Poseidon Principles will serve our institutions as well as clients to quantitatively assess and disclose the climate alignment of their underwriting portfolios.

“This will thus improve decision-making at a strategic level, and eventually shape a sustainable future for all. The disclosure framework provided by the Poseidon Principles will enable us to report our progress towards net-zero insurance using granular marine data.” Kern urged everyone in the industry to align with net-zero 2050 targets.

Rolf Thore Roppestad, CEO of Gard, and Vice-Chair of the drafting committee agreed this initiative provides a progress monitor. He assured that Poseidon Principles will collaborate with members and clients to ensure both criterion and the methodologies applied would be practical and straightforward. Ben Abraham, CEO of Global Marine at Willis Towers Watson, as well as Helle Hammer, Managing Director of Cefor, the Nordic Association of Marine Insurers expressed zeal. They concurred that joining the drive reflects everyone’s commitment to navigate to a net-zero destination. Hammer declared Cefor’s pledge to promote a sustainable ocean industry.

Marine Online Media Team
Please email us at marketing@marineonline.com to contact the author for this article.

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