Beazley has received ‘in-principle’ approval from Lloyd’s to establish Syndicate 4321 to exclusively provide additional capacity to companies that score well against ESG metrics.
Led by Will Roscoe, head of Beazley’s market facilities division, the syndicate will begin underwriting on 1 January 2022.
Syndicate 4321 was created under Lloyd’s syndicate-in-a-box (SIAB) framework, which alters participation and entry criteria to make it simpler and more capital-efficient for smaller firms to enter and trade at Lloyd’s.
In addition, SIAB enables quicker balances, improved transparency and more efficient testing and learning environments.
The new specialist ESG syndicate will operate a consortium arrangement led by Syndicates 623 and 2623, which are also part of Beazley.
Eligible participants that meet ESG rating scoring criteria will then be provided access to additional capacity through Syndicate 4321, which will underwrite across the lines of directors and officers, healthcare, financial institutions, cyber and property, among others.
Adrian Cox, CEO of Beazley, comments: “By creating the first specialist ESG syndicate at Lloyd’s, Beazley is taking an early step in delivering our commitment to embed ESG across our organisation, including our underwriting.”
“Beazley has a track record of creating innovative underwriting vehicles and Syndicate 4321 delivers this to clients that have already achieved ESG standards. We continue to support all our clients, at whatever stage they are at in their ESG journey, with meaningful risk management and insurance capacity,” he continues.
Roscoe adds: “Syndicate 4321 is an innovative and tangible way to support those businesses that invest in ESG by offering additional capacity. Evidence demonstrates that businesses with high ESG ratings are likely to have a lower risk profile and we are looking forward to building long-term partnerships with clients that, like us, value doing the right thing.”
