Bermudian-based Axis Capital Holdings Ltd has in-principle approval from Lloyd’s to establish a new syndicate dedicated to providing capacity for new energy projects that have a critical role in supporting the transition to net zero and building a more resilient, economically sustainable world.

Through Energy Resilience Syndicate 2050, Axis said, it will provide a single access point to specialist insurance solutions for cross-class risks over the life cycle of projects and activities associated with replacing or displacing fossil fuels through lower-carbon alternatives and supporting energy resilience during the transition phase.

The syndicate brings together existing underwriting expertise in key classes, including in areas in which Axis already holds a lead position, the company said.

It added that this will be the first syndicate to specifically focus on insuring organisations’ energy transition journeys, in line with their actions to achieve net zero by 2050, which is crucial for meeting the goals of the Paris Agreement.

Broad in scope, Syndicate 2050 will typically underwrite the construction and operation of technologies and projects that support energy transition.

In addition, the syndicate will insure activities, such as transit, storage and financing, that support and enable cleaner energy projects.

The syndicate will also provide insurance protection for the personnel involved, through professional indemnity and accident and health coverages.

Pending final approval by Lloyd’s, Axis Energy Resilience Syndicate 2050 aims to begin underwriting on April 1, 2024.

“The shift to net zero is among the biggest challenges of our age to be undertaken in the world of commerce,” said Mark Gregory, head of global markets, Axis.

“There is a considerable opportunity for Axis and the market to step up and demonstrate that we can develop the coverages needed to support energy transition.

“Through Axis Energy Resilience Syndicate 2050, we aim to lead the market in offering specialty insurance solutions that enable the investment, innovation and technological developments necessary to develop cleaner, more resilient sources of energy. Our approach is firmly aligned to the commitment made by Lloyd’s to supporting an ‘urgent and orderly transition to net zero’.”