Law firm Appleby has been recognised at a UK awards ceremony for its work involving a progressive transaction to provide African Union member countries with insurance coverage against climate-related risks.
A team from Appleby Bermuda picked up ‘Most Innovative Use of an Alternative Risk Transfer (ART) Structure’ at the UK Captive Services Awards 2015 in London on last week.
Appleby provided counsel to African Risk Capacity (ARC), a specialised agency set up by the African Union, on the incorporation and registration of ARC Insurance Company Limited (ARC Ltd), a Bermuda-domiciled company. ARC Ltd was established to provide insurance coverage against climate-related risks, including drought and insecure food populations, for a group of countries initially comprised of Kenya, Mauritania, Mozambique, Niger and Senegal. Germany and the United Kingdom were also founding members of ARC Ltd and contributed the initial capital.
Earlier this week, ARC announced it was to pay out $25 million to drought-stricken countries.
Appleby Partner Brad Adderley, who led the Appleby team in Bermuda advising ARC and accepted the award, said: “We are fortunate to have been able to collaborate on the ARC transaction with formidable external partners Stroock Stroock & Lavan LLC, Marsh IAS (Bermuda) and Willis Group.
“This recognition is a further testament to Bermuda as a leading jurisdiction for unique insurance vehicles and Bermuda Monetary Authority’s expertise and reputation. ARC, along with the various governments involved in developing this specialist hybrid mutual insurance company, selected Bermuda based on the level of knowledge, capabilities, and regulatory and supervisory services available.
“As climate change is a pressing, global concern, we hope the ARC transaction will encourage governments and companies worldwide to assess their weather-related risks and consider the important role that insurance, reinsurance and insurance-linked securities can play.”
The awards judges factored into their assessments the creative and innovative design of ART structures providing effective cover, evidence of cost benefits, efficiencies, complexity or simplicity of the structure, as well as the use of alternative markets, such as capital markets or using the structure as a profit centre.
Global insurance and reinsurance broker Willis, which has a Bermuda office, was last December awarded an insurance industry transaction of the year award for its work in setting up ARC on the Island and earlier won a reinsurance transaction of the year plaudit for the same fund.
To read the full article visit the Royal Gazette article here
Source: The Royal Gazette