SCOR, AXA XL and Marsh have joined forces and expertise to support the energy transition through their involvement in a pioneering maritime transport project led by TransOceanic Wind Transport (TOWT), a French shipping company proposing a cleaner way to ship cargo in the form of sailing vessels.

TOWT has just begun the construction of six sailing cargo “sisterships” designed to help decarbonize the global shipping industry using the power of the wind. 

SCOR Business Solutions and AXA XL Insurance are supporting the TOWT project through a pioneering credit insurance policy (Marine Supported Finance) offered by the broker Marsh.

Compared to traditional hydrocarbon-dependent container ships, sailing cargo ships are far less polluting, dramatically reducing harmful emissions such as CO2, sulfur oxides, nitrogen oxides, and methane. As well as being beneficial for the climate, this also helps to reduce the impact of shipping on marine biodiversity by lowering ocean acidification. Moreover, the slower sailing speeds, lower noise levels and greater maneuverability of sailing cargo ships mean that they reduce the risk of collisions with marine life.

The construction of all six vessels is being financed simultaneously, by CIC, Arkéa, Caisse d’Epargne Normandie and Banque Palatine. On the insurance side, Bpifrance Assurance Export is also providing support through its shipbuilding insurance product Garantie Interne. 

Bernard Verlet, Senior Political and Credit Risks Underwriter at SCOR Business Solutions, commented: “The SCOR Political and Credit Risk team is proud to support a pioneering transaction, insuring investment in an ancient technology to contribute to solving a very modern challenge. This transaction is fully aligned with the team’s aim – to insure trade and investment which supports a more sustainable and socially responsible global economy. We are committed to working with clients to insure the energy transition across multiple sectors and technologies.”