11 January 2023Actuarial & underwriting

Zurich NA & ICS create Envision Re

Zurich North America, has collaborated with Innovative Captive Strategies (ICS) to create captive reinsurer Envision Re.

“Envision Re's sustainability lens is unique in the group captives marketplace,” said Dawn Hiestand, head of group captives at Zurich North America. “The Envision Re captive will provide the usual advantages of a member-owned, Zurich-fronted captive, offering companies greater control of their auto, general liability and workers' compensation risk management programs, with the added value of services and support for members' individual sustainability objectives. These companies will have access to innovative sustainability-oriented services from our risk engineering unit, Zurich Resilience Solutions, as well as the ability to share best practices with like-minded companies in the captive to help each of them make progress on their respective goals.”

According to the company the difference begins at member vetting. Prospective members of the captive start with a sustainability assessment of their carbon footprint and energy consumption, led by Zurich Resilience Solutions. The purpose is not to hold them to any single standard, but to provide them baseline data and a report from which they can develop or adjust their roadmap to progress in their sustainability journey.

Members can be at various points on the sustainability continuum. Members will have access to Zurich's leading-edge products, services, partnerships and knowledge. Zurich Resilience Solutions has developed more than 18 innovative, sustainability-oriented services including climate change modelling and Energy Saving Infrared Scanning. Zurich's own ESG rating was recently upgraded to the highest possible from MSCI, which provides research and analysis to the global investment community.

ICS will manage the Envision Re captive. Since 1999, ICS has specialized in creating member-owned group captives to provide an alternative solution for businesses to insure workers' compensation, general liability and auto coverages. ICS manages over 35 group captives in both the property-casualty and employee benefits space.

“ICS has built its reputation around creating captives with higher engagement and more control with a peer group experience for its captive owners,” said Tim Flattery, Captive Consultant and Shareholder at ICS. “This leads to loss ratios that outperform the industry standards. ICS and Zurich are now taking this same model that has led to so much success in loss prevention and added the focus of sustainability.”

The captive is vetting members representing sectors such as agriculture, alternative energy, construction, manufacturing, professional services, supply chain, technology, transportation and logistics, and wholesale. The captive will align with the typical group captive structure with one addition: a sustainability committee in addition to risk control, finance and underwriting committees.

As best practices on sustainability rapidly evolve, Zurich Resilience Solutions will offer Envision Re members a range of tools and support to help manage both operational and embodied emissions in a company's energy infrastructure, construction, product development, manufacturing, distribution and more.

The introduction of the Envision Re captive reflects Zurich's broader commitment to sustainability.

“Reducing reliance on fossil fuels and carbon emissions remains a key priority for Zurich, both in our own business and in how we support customers, and Envision Re is an example of this,” said Kristof Terryn, chief executive of Zurich North America. “Last year Zurich Insurance Group celebrated its 150th anniversary, and as we look to the future we will continue to develop innovative approaches and solutions to support sustainability for all.”