“Against the backdrop of an insurance industry starved of truly sustainable capacity, Parhelion’s new and diversified ESG products will meet the risk financing needs of a greener economy,” Howden said.
Parhelion has been seeded by Howden and will match the surge in institutional capital looking for sustainable investment strategies with the demand from corporates seeking an insurance provider to support their transition to a greener and more resilient business.
“Parhelion will look at risk through a new lens, to support a unique underwriting approach based on data, technology and proprietary ESG criteria,” Howden said. “Empirical studies evidence a persistently strong correlation between corporates with advanced ESG credentials and low insurance claims, enabling Parhelion to offer premium and cover at advantageous terms, while generating strong shareholder returns.”
Parhelion will provide traditional risk coverage, as well as creating new, ESG-specific products. Julian Richardson and David V. Cabral, both reinsurance and climate risk finance experts, will lead the company as co-CEOs. They will be joined by Chris Sharp as chief underwriting officer in September. Parhelion’s aim is to begin underwriting by January 01, 2022.
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“We’re delighted to offer a unique solution for our clients who are in need of a new and sustainable approach to the risks of the future,” said Charlie Langdale, head of sustainable insurance at Howden. “Parhelion will be an unencumbered, highly rated ESG-focused carrier, backed by fresh capital, that our clients can partner with and trust. Its launch is a step towards facilitating long-term industry change.”
“Companies are transitioning to sustainable procurement and this should not be limited to physical goods; it must also include financial services and products,” Richardson and Cabral said in a statement. “Our vision is to support customers’ transition to a more sustainable and resilient future while creating a virtuous cycle of improved risk control and underwriting performance, irrespective of the market cycle. This vision will be supported by an ecosystem of services and shared data insights to support the overall customer ESG transition.”
Source: Insurance Business Magazine