Two major French (re) insurance groups, SCOR and AXA, have launched a new Lloyd’s of London consortium dedicated to advancing ecological restoration. The consortium aims to unlock financing for ecological restoration projects by de-risking the associated investment opportunities.
According to a media release issued by SCOR, the consortium addresses a critical gap in the insurance market for projects that assist the recovery of previously degraded, damaged, or destroyed ecosystems.
The consortium will underwrite SCOR’s Restore Product, which provides cover for the phase of an ecological restoration project that focuses on the implementation of the conditions for recovery.
This development marks the next evolution of SCOR’s NatReCo (Nature Restoration and Conservation) initiative that was launched in May 2024. NatReCo develops insurance solutions designed to support nature-resilient restoration and rehabilitation.
The consortium will be led by SCOR’s Syndicate 2015 at Lloyd’s, managed by SCOR Managing Agency and supported by AXA XL Syndicate 2003 at Lloyd’s. By combining capacity and global reach, SCOR and AXA will be able to cover larger, more complex ecological restoration projects worldwide.
SCOR P&C CEO Jean-Paul Conoscente said, “Restore enhances the likelihood of successful completion for ecological restoration projects and provides greater project confidence. By partnering with AXA, we can scale our impact and help address one of the most pressing environmental challenges of our time. This collaboration reflects our shared commitment to healthy ecosystems and innovative solutions that aim to support the long-term welfare of society.”
AXA P&C Commercial Group Chief Underwriting Officer Etienne Champion said, “This product is the logical continuation of AXA’s environmental commitments. With SCOR, we are taking a further step: offering a solution that concretely secures nature restoration projects and turns our commitments into tangible actions in support of natural capital. The preservation of biodiversity plays a major role for the economy: it is estimated that around 50% of the world’s economy relies directly or indirectly on healthy ecosystems, which makes their protection a strategic priority for all economic actors.”
SCOR and AXA have invited project developers, investors, and other stakeholders committed to ecological restoration to get in touch to learn more about the consortium and explore partnership opportunities.