Plant Based Insurance
We offer peace of mind for all stakeholders with our cost-effective, tailored, comprehensive approach for your plant based insurance project.
A multi-product approach is required that considers the various needs of producers, end-users, financial providers and exchanges:
- Joining up with one of the world’s largest insurers who’s been investigating insurance-based solutions for voluntary carbon credit schemes
- Reviewing existing insurance solutions from insurers and markets at Lloyd’s for existing products that can be readily adapted
- Speaking to insurers and markets about the provision of bespoke products
- Looking to provide multi-product solutions
- Reviewing projects in their entirety to understand the risk management scenario and provide insurance-based solutions to make the identified needs
Risk mitigation
Typically lasting one to four years, at this stage, emphasis should be placed on the key elements of the business plan for the early years.
Risks
Financiers will be concerned by risks associated with the:
- Country where the operation (e.g., forest) will be located
- Deliverability of the essential equipment
- Protection of assets
- Ensuring the saplings will grow on time, and as far as possible, in line with the business plan
- Nursery related risks and sourcing of seeds, together with insurance of key staff necessary
Mitigants
Primary:
- Political Risks Insurance
- Delay in Start-up
- Plant & Equipment
- Buildings
- Extreme Weather
Secondary:
- Directors/Employees
This is the phase whereby saplings are accredited as mature enough to be tested/measured by accreditation bodies.
Risks
The key risks here continue to be:
- Deliverability
- Existence (actual and continuing)
- Ownership (actual and continuing)
- Ability to measure and monitor
Primary:
- Political Risks Insurance
- Delay in Start-up
- Plant & Equipment
- Buildings
- Extreme Weather
- The ability to protect the accreditation against approximate causes of loss
Secondary:
- Directors/Employees
Increasingly, this has been the area of focus for criticism of deforestation carbon credit projects.
Risks
The key issues are:
- Measurability (there is a strong need to be able to accurately measure the carbon benefit)
- Continued existence/permanence (are the underlying assets still extracting carbon and guaranteed to do so?)
- Continued benefits to the wider local population
- Carbon reversal (events such as fire, disease, drought, and flooding pf nature-based projects could lead to carbon being release)
Mitigants
Primary:
- Political Risks Insurance
- Delay in Start-up
- Plant & Equipment
- Buildings
- Extreme Weather
- The ability to protect the accreditation against approximate causes of loss
- Agricultural Insurance (to ensure the healthy longevity and continued existence of the underlying assets)
Secondary:
- Directors/Employees
We strongly believe that insurance can mitigate most stakeholders’ risk, albeit with a unique package of insurance products.
This would require an insurance broker who understands the evolution of the risk/product cycle and who can help Producers find the right cost-benefit balance of insurance.
Pull up a chair and lets chat
tel: +44 (0)7725 590004
email: sat@thewoodenchair.co.uk
America House | 2 America Square
London EC3N 2LU