Six leading insurers have signed up to the new Poseidon Principles for Marine Insurance to promote the decarbonisation of shipping.
The Poseidon Principles was established in 2019 by leading ship financiers under the Global Maritime Forum (GMF).
The idea is for shipping financial service providers to monitor and disclose the performance of their clients in line with International Maritime Organization decarbonisation targets.
The marine insurers that have signed up to the latest initiative are Swiss Re, Gard, Hellenic Hull Management, SCOR, Victor Insurance and the Norwegian Hull Club.
The Poseidon Principles for Marine Insurance will monitor clients' performance against two benchmarks.
The first is in achieving a 50% reduction in total emissions, compared with 2008 levels, by 2050, which is the current IMO target.
The second benchmark is to achieve net-zero emissions by 2050, a target the IMO is widely expected to adopt in 2023.
The Poseidon Principles for Marine Insurance is also the first insurance initiative to align itself with the Net-Zero Insurance Alliance (NZIA), which is committed to transitioning underwriting portfolios to net-zero greenhouse gas emissions by 2050.
The NZIA target is consistent with the COP21 Paris Agreement to limit global warming to 1.5C.
Sustainable future
SwissRe Corporate Solutions head of marine Patrizia Kern has been one of the most vocal in encouraging marine insurers to support decarbonisation by monitoring performance.
"The Poseidon Principles will serve our institutions as well as our clients to quantitatively assess and disclose the climate alignment of their underwriting portfolios and thus improve decision-making at a strategic level and shape a sustainable future for all," Kern said.
"The disclosure framework provided by the Poseidon Principles will enable us to credibly report our progress towards net-zero insurance using granular marine data."
Gard chief executive Rolf Thore Roppestad said: "Our common goal is an accelerated move towards a decarbonised industry."
The initiative is being supported by the Nordic Association of Marine Insurance (Cefor), the International Union of Marine Insurers, fixed premium insurance provider EF Marine and broker Willis Towers Watson.
The GMF expects more insurers to join.
