New Environmental Insurance Product
A new environmental insurance product was announced recently by Mark Lucas, Managing Director of Euro RE, the U.S. RE office in Copenhagen, Denmark.
One of the largest Swedish insurance companies, the LF Group, recently launched the new environmental insurance product under the auspices of Lansforsakringar Miljoforsakringsaktiebolag. The new environmental insurance will be offered to Producers, Importers, and Distributors (PID's) of larger consumer goods in Sweden. According to Swedish legislation, the PID's are responsible for the proper handling and recycling of the products at the time when the products are scrapped and recycled. The purpose of this new insurance is to relieve the policyholder from the open-ended liability that a PID may encounter.
Euro RE in cooperation with LF Group and a number of selected reinsurers developed a reinsurance structure that grants the client protection for the overall result of his operations.
"Owing to the long-tail nature of the business, the reinsurance has been constructed in a manner where both the technical results and investment results form part of the treaty. With a protection of this nature, the reinsurance in essence becomes a true partnership arrangement with client and reinsurers truly sharing the fortunes," Mr. Lucas said.
Owing to the growing awareness of the need to preserve the environment, LF Miljo expects that the product will be very well received in the Swedish market and that it will, in the medium term, also prove successful in other countries.