AXA XL Environmental Risk Biodiversity Deductible Reduction

Terrestrial

Cut deductibles for biodiversity risk action

Private

• 25% deductible reduction for proactive biodiversity management
• Embeds nature criteria directly in corporate insurance terms
• Improves ecological restoration preparedness
• Rewards prevention over remediation

Underwriting incentive granting a 25% deductible reduction to Environmental Risk clients that establish an ecological biodiversity baseline and integrate it into accident prevention and management plans.

AXA XL, ACT4Nature, Marsh France

Case study referred by UNEP FI. For more information, please contact: info@naturance.eu.

In France, a 2016 biodiversity law introduced obligations for companies to restore damaged natural sites to baseline conditions following environmental accidents. In response, AXA XL developed an underwriting incentive within its Environmental Risk insurance policies: corporate clients that (i) commission an independent ecological assessment of nearby natural areas to establish a biodiversity baseline, and (ii) integrate the findings into their accident prevention and management plans, receive a 25% reduction in their policy deductibles. This mechanism encourages proactive biodiversity risk management by embedding nature-related criteria directly into insurance terms, improving clients' preparedness for ecological restoration obligations while rewarding preventive action. Marsh France brokered the development of this provision. The initiative was developed with input from ACT4Nature, an alliance of French companies, academic bodies and public institutions.

• Valuing client actions to reduce carbon emissions and promote biodiversity
• ASSURANCE ET BIODIVERSITÉ | France Assureurs