Members of the ASEAN Reinsurance Working Committee (ARWC) have signed a Memorandum of Understanding (MoU) to support underwriting capacity and set up the terms for the establishment of the ASEAN Renewable Energy Pool (AREP) under the supervision of ASEAN Insurance Council (AIC).
“Given the potential challenges in respect of the capacity and expertise in ESG/Renewable Energy and the complexity of the solar, wind, and other renewable energy resources, the inherent financial risk associated with these ventures can be potentially overwhelming for one insurance company to manage effectively. Therefore, there is a need for a group of companies to pool their resources and band together to form an insurance pool to underwrite the risks associated with these renewable energy sources” said Mr Ahmad Noor Azhari Abdul Manaf, president & CEO of Malaysian Re.
The MOU, signed on 8 December 2023 at the 26th ASEAN Insurance Regulators’ Meeting & 49th ASEAN Insurance Council Meeting, indicates joint commitment from the participating ARWC Members under the supervision of AIC, to collaborate, work together and lead the ASEAN (re)insurance industry to support member countries’ efforts to achieve the net zero emission target and deal effectively with climate change.
The participating ARWC Members for this collaboration are Malaysian Re (as Pool Manager), PT Reasuransi Indonesia Utama (Persero) (Indonesia Re), Vietnam National Reinsurance Corporation (VINARE), Cambodian Reinsurance Company (Cambodia Re), Thai Reinsurance Public Company Limited(Thai Re) and National Reinsurance Corporation of the Philippines (Nat Re).
The formation of AREP was initially proposed by Malaysian Re, chair of the ARWC for the 2021-2022 term, during the 4th ARWC meeting on 15 October 2021 as a Facility or Pool to support the ASEAN governments’ renewable energy policies.
Source: asiainsurancereview.com