SCOR unveils NatReCo Initiative to drive nature-positive re/insurance solutions

SCOR has launched the NatReCo Initiative to offer clients re/insurance solutions supporting nature-positive projects that address societal challenges such as climate change, health and wellbeing, food and water security, sustainable agriculture, and natural catastrophe risk.

The French reinsurer suggested that it strives to optimise its impact on nature and people by contributing to the welfare, resilience, and sustainable development of society.

According to the firm, healthy ecosystems are essential to maintaining the planet’s biological diversity and the natural capital that sustains human life and well-being.

“Unfortunately, ecosystems are rapidly declining with some at risk of collapse, impacting public health, society, economies and financial assets. Although there is a greater awareness of declining ecosystems and understanding of the importance of ecosystem integrity and resiliency, it is apparent that more financing for ecological restoration projects is required to address this issue,” SCOR said.

With this in mind, the French reinsurer’s NatReCo Initiative has developed a scalable, impact-driven Ecological Restoration Insurance Solution designed to bridge the gap between the growing demand for ecological restoration and the availability of financing by de-risking investment opportunities and enhancing project viability.

“This Solution, which has three different products to reflect the different stages of an ecological restoration project, will insure the costs which are incurred to get a project back on track following an insured event such as a fire, flood or storm,” SCOR noted.

As Reinsurance News understands, the Restore product is the initial product of the Ecological Restoration Insurance Solution and provides indemnity during the period in which the conditions for recovery are being implemented.

The Restore products principal features include a standards-based approach, expert assessment, and dedicated claim utilisation.

SCOR proposed that integrating its standards-based approach, developed in collaboration with the Society for Ecological Restoration, which evaluates project quality during onboarding to ensure alignment with ecological restoration goals, significantly improves the Ecological Restoration Insurance Solution by increasing both the likelihood of project completion and confidence in achieving desired ecological outcomes.

“This in turn provides a greater prospect of outcome, greater security of investment and capital efficiency, which will attract greater financing for ecological restoration projects,” the French reinsurer explained.

It would seem that SCOR’s NatReCo Initiative signals a strategic pivot, leveraging underwriting expertise to directly address the urgent need for ecological restoration financing and thus expand the industry’s role in global sustainability efforts.

SCOR has revealed that coverage highlights include insurance provided on a ‘loss occurring and reported’ basis, offered through a direct insurance product written on SCOR Syndicate paper.

The coverage applies to risks and insureds located and domiciled worldwide and encompasses all terrestrial biomes.

It includes an aggregate event insured limit of up to €10 million per risk, or the equivalent in other currencies.

A minimum deductible of €10,000 per claim also applies, with currency equivalency. Policy terms can extend up to five years, and the specific perils covered are determined on a case-by-case basis.

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