Press release from Guernsey Finance on Wednesday 22 September, 2021.
The Guernsey International Insurance Association (GIIA) has awarded its first environmental, social and governance (ESG) accreditation for an insurance entity.
The framework was launched in Guernsey earlier this year and has awarded Dunant Re IC Limited – an Incorporated Cell of Replexus ICC (Guernsey) Limited, managed by Aon Insurance Managers (Guernsey) – the first accreditation of its kind.
Mark Elliott, Chair of the GIIA, said: ‘GIIA is delighted with the response received from members in relation to our ESG Framework. This announcement of the first accredited entity under the framework is a testament to our ambition to position ourselves at the forefront of ESG standards.
The time for real action and transparency is here and we congratulate the Red Cross, Dunant Re and Aon Insurance Managers on their achievement.’
The Red Cross-sponsored insurance bond was the first of its kind when it launched in March 2021. Dunant Re IC is the first humanitarian catastrophe bond covering pure volcanic eruption. $3m was raised through specialist cat bond investors to cover the risk of 10 volcanic eruptions across three continents.
Cedric Edmonds, Founder and Director at Replexus ICC, said: ‘I am delighted that the Red Cross-sponsored Dunant Re is the first entity to receive GIIA's ESG kitemark and I hope, for the good of our world and generations to come, that this is merely the first of very many companies to receive this honour.’
Paul Sykes, Managing Director Aon Insurance Managers (Guernsey) Limited, also celebrated the achievement. He said: ‘We are delighted to have supported Replexus and Dunant Re in becoming the world's first ESG-accredited insurer under the GIIA kitemark. Through playing an important role in another world first, we demonstrate Aon's continued commitment to both ESG and delivering innovation to our clients.’
The framework, devised in collaboration with ESI Monitor, enables insurers and insurance managers who are members of GIIA to self-certify, and apply for a kitemark through a third-party accreditation process.
It follows the United Nations’ recommended approach of incorporating ESG processes to align sustainable development goals with the outcomes of financial services products, services and investments made by the insurer.
The framework sets out four pillars of requirement which must be fulfilled to comply with the framework. They are:
• To embed ESG within the decision-making and governance structure;
• The risks underwritten to contribute to achieving the sustainable development goals;
• The investments held to contribute to achieving sustainable development goals; and
• The insurer to publicly disclose how it has met the framework’s requirements.
Josephine Bush, Strategic Adviser for Green and Sustainable Finance at We Are Guernsey, said: ‘Guernsey has once again demonstrated how it can innovate and collaborate to stay at the forefront of sustainable finance. We believe this is another important step towards a greener and more sustainable future for the global insurance sector.’