Managing general agents (MGAs) have to adapt to the increasing focus on environmental, social and governance (ESG) in the aviation and energy insurance segments in the Middle East, as in the wider insurance market.
Two senior executives at elseco—head of aviation Alain Burguiere and head of energy Philippe Vivares—told Middle East Insurance Review that the increasing emphasis on ESG factors is driving MGAs to refine their underwriting strategies to align with sustainability goals while ensuring that regional insurers can actively participate in the shift towards greener initiatives.
elseco is an underwriting specialist for high-technology risks within the aviation, energy and space insurance sectors.
Speaking about aviation, Mr Burguiere pointed to the growing demand for policies that support greener aviation initiatives, such as carbon offset programmes and sustainable aviation fuel adoption. To rise to such demand, he said MGAs could integrate ESG considerations into their risk selection criteria, ensuring that the underwriting approach aligns with global sustainability trends while enabling regional insurers to be part of this transition”.
In the energy sector, according to Mr Vivares, the shift towards renewables “has led to a more pronounced focus on responsible underwriting practices”.
MGAs could align themselves with ESG factors by including deliberate allocations towards renewable assets in energy portfolios, ensuring that the region’s ambitious clean energy goals are matched with relevant insurance solutions.
He said, “By enabling local insurers to participate in these risks, MGAs contribute to building a more diversified and resilient regional insurance market.”