Deal designed to offer additional insurance capacity for the carbon markets
Munich Re Group and CarbonRe Switzerland intend to work in a strategic partnership to provide additional direct insurance capacity to the carbon markets.
Under the deal Munich Re will be the preferred partner and reinsurer of CarbonRe in order to offer additional insurance capacity, joint underwriting and risk evaluation.
CarbonRe said: ‘The cooperation leads to the most competent global risk control and risk transfer partnership for supporting insurance solutions for the carbon markets today.'
“The cooperation leads to the most competent global risk control and risk transfer partnership for supporting insurance solutions for the carbon markets today.
Dirk Kohler, chief executive officer of CarbonRe said: ‘Project portfolio underperformance and counterparty risks have dramatically increased in the last 6 months and buyers, lenders and investors in emission reduction projects are concerned about their money – compliance buyers about their license to produce. At project level in developing countries and emerging markets there is a lack of risk management and insurance coverage to protect the investments needed to fight global climate change.’
Richard Wulff, head of divisional unit financial risks at Munich Re added: ‘We will join force in commercial action and promote as well Munich Re’s Kyoto Multi Risk Policy, a special and financial risk coverage for so called CDM-projects.'
Chairman Richard Vögeli of CarbonRe Securities AG announced the decision to establish a direct insurance company as a next step of the company’s development and evolution from insurance intermediary to a primary risk taker.