As global industries work on reducing harmful emissions, UK-based insurance company AXA XL rolled out an innovative carbon solution developed specifically for the maritime industry.
The new product, Excess Emissions Insurance, is an extension to AXA XL’s existing marine hull insurance and was developed in partnership with decarbonization company ClimateSeed.
The transport sector plays a significant role in adding to the overall carbon footprint of the world. With the increasing number of individuals traveling and the booming global exchange of goods, there is a growing need to regulate and decrease the amount of carbon emissions released by this branch of industry.
With this challenge in mind, AXA XL created Excess Emissions Insurance, providing an opportunity for their marine industry clients to obtain coverage for emissions resulting from unforeseen journey extensions caused by a covered risk. In the case of such an event, the policyholder will receive compensation in the form of voluntary carbon credits, which will match the quantity of harmful emissions that took place during the journey extension.
Realizing the gravitas of environmental impact, AXA XL put together a specialized, in-house Carbon team, which will review and evaluate carbon-related products and services developed internally and in the London market.
To attest to their commitment to provide high-quality, custom-tailored solutions for specific industry needs, the insurance company chose ClimateSeed as their partner in this new endeavor, which on its own is a company widely recognized as a producer of products for removing and avoiding carbon emissions.
Sean McGovern, CEO, UK & Lloyd’s, AXA XL, commented: “This is a great example of a product innovation initiative becoming reality. The expertise and commitment of our new Carbon team in helping to develop innovative solutions allows us to better serve and support our clients as they work towards net zero targets.”
He goes on to add that the company will continue to look for ways to partner with its clients and address their biggest long-term challenges.