Guernsey Insurance Industry Group Awards First ESG Accreditation

Businessman holding the acronym ESG in a bubble with adjoining bubbles reading environmental, social, and governance

September 23, 2021

Businessman holding the acronym ESG in a bubble with adjoining bubbles reading environmental, social, and governance

The Guernsey International Insurance Association (GIIA) has awarded its first environmental, social, and governance (ESG) accreditation for an insurance entity to Dunant Re IC Limited.

Dunant Re IC is an incorporated cell of Replexus ICC (Guernsey) Limited, managed by Aon Insurance Managers (Guernsey). In a statement, Guernsey Finance said it was the first accreditation of its kind. The GIIA launched the ESG framework earlier this year.

Earlier this year, the Danish Red Cross issued the first humanitarian catastrophe bond covering pure volcanic eruption through Dunant Re IC.

The catastrophe bond, which covers the risk of eruption of 10 volcanoes across 3 continents, raised $3 million from specialist catastrophe bond investors, with the capital raised to be used to support humanitarian aid following an eruption.

"GIIA is delighted with the response received from members in relation to our ESG Framework," Mark Elliott, GIIA chair, said in a statement. "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."

"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 honor," Cedric Edmonds, founder and director of Replexus ICC, said in the statement.

"We are delighted to have supported Replexus and Dunant Re in becoming the world's first ESG-accredited insurer under the GIIA kitemark," Paul Sykes, managing director of Aon Insurance Managers (Guernsey) Ltd., added in the statement. "Through playing an important role in another world first, we demonstrate Aon's continued commitment to both ESG and delivering innovation to our clients."

Guernsey's ESG framework, created in collaboration with ESI Monitor, enables GIIA member insurers and insurance managers to self-certify and apply for a kitemark—a UK product and service quality trademark—through a third-party accreditation process. The framework 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 includes four pillars, which must be fulfilled for compliance.

  • 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
  • The insurer to publicly disclose how it has met the framework's requirements

"Guernsey has once again demonstrated how it can innovate and collaborate to stay at the forefront of sustainable finance," Josephine Bush, strategic adviser for green and sustainable finance at We Are Guernsey, said in the statement. "We believe this is another important step towards a greener and more sustainable future for the global insurance sector."

September 23, 2021