The Guernsey International Insurance Association (GIIA) has awarded its first environmental, social and governance (ESG) accreditation for an insurance entity.
The framework, launched in Guernsey earlier this year, has awarded the accreditation to Dunant Re IC, an incorporated cell of Replexus ICC (Guernsey), which is managed by Aon Insurance Managers (Guernsey).
The Red Cross-sponsored insurance bond, launched in March 2021, is the first humanitarian catastrophe bond covering pure volcanic eruption.
A total of $3m was raised through specialist cat bond investors to cover the risk of 10 volcanic eruptions across three continents.
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 issues that must be complied with:
• 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.