- Insurer to launch new low-carbon underwriting policy and commit to achieving an underwriting portfolio for energy production that is over 75% low carbon by 2030
- Promises to help enable and foster the transition to Net-Zero through the provision of products and services supporting Net-Zero energy generation
- Will progressively rebalance underwriting portfolio in favour of Net-Zero energy production via Renewable Energy service offerings for clients
- Will tap into Intact Financial Corporation’s expertise to increase focus on adaptation in the geographies and communities in which it operates
RSA today announced the launch of its new low-carbon underwriting policy, effective 1 January 2023, and a commitment to achieving an underwriting portfolio for energy production that is over 75% low carbon by 2030.
The insurer – which was acquired by multinational property and casualty insurance company Intact Financial Corporation (IFC) in 2021 – will do this through the implementation of a dynamic underwriting strategy, which will inform every part of its global underwriting operations.
The new underwriting strategy will utilise robust, independent and verifiable climate data and metrics to both measure portfolio performance and inform enhanced underwriting and portfolio management processes.
As part of the new policy, RSA will also progressively rebalance its underwriting portfolio in favour of Net-Zero energy production via Renewable Energy service offerings for clients, which will be made available across geographies.
Additionally, RSA intends to tap into IFC’s experience of delivering climate adaptation and resilience in North America, in order to place increased focus on climate adaptation in the geographies and communities in which it operates.
The new undertaking also furthers the commitment made to enabling the transition to Net-Zero as set out in its 2019 Climate Change and Low Carbon Policy (further info below) through:
- the provision of products and services supporting Net-Zero energy generation;
- supporting clients on their Net-Zero transition pathways; and
- ensuring that RSA does not underwrite new business that does not align with its own organisational Net-Zero goals and timelines.
Speaking about the new policy, Ken Norgrove, CEO, UK&I, said: “It’s never been clearer that urgent action is needed to tackle the climate crisis. At RSA, we’ve long been committed to responsible business and doing what we can to help protect our clients, our environment and the societies in which we live and work. The launch of this new low-carbon underwriting policy furthers that commitment.”
Commenting, Michael Gregory, Head of Underwriting Strategy and Delivery, added: “Having exceeded the targets we set out under the low-carbon underwriting policy that was implemented in late 2019, today we have the confidence to push ourselves and our business even further, establishing achievable criteria that are among the most progressive in the industry.”
Notes to editors
RSA’s new low-carbon underwriting policy also retains RSA’s industry-leading 2019 commitments* to rule out:
- offering insurance contracts to projects relating to energy exploration, extraction or production in the Arctic or Antarctic region;
- offering insurance contracts to projects relating to exploration, construction or operation of coal mines;
- offering cover to power utilities that generate more than 30% of revenue from thermal coal power generation, except where our involvement is to support a project which will enable its transition to renewable energy;
- offering insurance contracts for new thermal coal, oil sands, shales and crude pipeline projects which would increase the overall emissions impact of our insured business, with an expectation that this will reduce over time; and
- providing Directors and Officers cover for the fossil fuels industry.
RSA will also continue to engage with customers in the energy sector with operations covering thermal coal, oil sands and shales, to understand and inform their transition plans, actively drive positive innovation and review environmental management measures ahead of renewal or offering any additional contracts.