AIG Risk Finance is launching a bespoke risk solution programme to deal with risks associated with carbon trading.
Philippe Gouraud, senior vice president of AIG Risk Finance, said the insurer intends to take advantage of the new business opportunities resulting from climate change.
The solutions will cover risks in four key areas:
• Operational
• Credit
• Political
• Pricing.
Gouraud said the products will be developed for investors and purchasers of carbon credits, as well as project owners, or sellers of credit.
Ultimately, he hopes “insurance protection can be an integral part of the strategy of project owners”.
Gouraud revealed that AIG is working with a European chemical manufacturer with projects in emerging markets to develop a bespoke risk solution.
AIG has also launched a new office for the environment and climate change, headed by Alice LeBlanc.
LeBlanc said that, while the company is committed to supporting initiatives to reduce climate change, it will not unilaterally stop insuring projects that increase global warming.
She said: “This is not part of our strategy. It is up to government to regulate and AIG cannot be the first mover”.
