Global insurance and reinsurance group AXA has launched a new phase in its climate strategy and has announced a new parametric risk transfer service called FastCat as part of its commitment initiatives.
AXA said it wants to accelerate its contribution to the transition as an investor, insurer and cooperation enabler, seeing both the asset and insurance or reinsurance sides of its business as key in helping the world adapt to the climate related risks it is facing.
Thomas Buberl, CEO of AXA, explained, “AXA has been a pioneer by setting up an ambitious climate change strategy, notably by starting to divest from coal, defining green investment targets, restricting coal-related insurance business and building collective action frameworks. These actions helped our industry to put climate change at the top of our collective agenda.
“But the climate emergency requires further efforts. Today we are launching a new phase in our climate strategy to accelerate our contribution to the transition towards a low-carbon and resilient economy, notably by focusing our sustainable finance efforts towards the energy transition of major industries. We are convinced that it is an absolute priority if we want to reach the objectives of the Paris Agreement.”
AXA intends to use all of its available levers, as a large asset owner and investor, a leading global player in many areas of the insurance and reinsurance market, and as a cooperation enabler, to drive towards a number of goals, such as containing the “warming potential” of its investments to 1.5C.
On the risk transfer side, AXA aims to leverage its climate expertise and a range of innovative technologies to deliver new, climate risk transfer and insurance solutions.
Through the AXA Climate unit, that the company set up after rebranding its AXA Global Parametrics division, AXA intends to launch new solutions designed to offer climate-focused protection to its customers and society.
AXA Climate is expected to launch a new parametric risk transfer and assistance service called FastCat in December.
FastCat will offer weather alerting and 24/7 real-time assessment using technologies such as satellite imagery and drones, as a way to support communities and corporations facing natural disasters such as flood, earthquake, cyclones and wildfire and provide necessary climate related insurance products.
As the climate strategy evolves and major corporations response becomes increasingly urgent, initiatives that leverage parametric triggers for risk transfer are expected to become more prevalent.
AXA is taking a step forward by embedding parametric insurance and risk transfer techniques at the heart of its own climate change strategy, with FastCat set to play a key role in protection people and businesses as the world transitions.