Unlocking the full-circle benefits of social impact
Specialty Credit is a tailored insurance solution that helps multinationals, financial institutions, export credit agencies, and multilaterals mitigate and manage risks. These risks include non-payment, contract interruption, confiscation, and other factors affecting organizations operating globally. The solution enables clients to manage exposure and pursue opportunities in new markets.
Pierre Lamourelle, Deputy Global Head of Specialty Credit & Midterm at Allianz Trade: "For decades, we have collaborated with global institutions and partners dedicated to fostering positive social impact, underwriting policies that empower them to expand their programs. Managing short-to-long-term transactions, political risk, and highly concentrated risks from large contracts and structured deals is becoming more complex. Our impact underwriting capabilities are therefore becoming instrumental for these players. As an insurer and corporate citizen, we decided to do more to drive the virtuous cycle of social impact, and have therefore created Specialty Credit for Sustainable Development."
Protecting corporates, banks, authorities, and multilaterals that drive positive impact
With Specialty Credit for Sustainable Development, Allianz Trade supports the entire value chain of social impact, from risk transfer to enabling new projects.
Florence Lecoutre, Board Member responsible for Sustainability, Data Analytics & AI, Human Resources, Compliance, and Communications at Allianz Trade: "First, through the policies we issue, we enable clients to engage in projects that address or mitigate specific social issue. It could be a contribution to universal higher education through new school construction or to public health through hospital projects. Second, we commit to hold investments in Social Bonds of an amount equal to or greater than the annualized premium paid for the duration of the policy period. We are therefore creating a circular model that continually fuels social progress. The entire process is subject to rigorous assessment by our sustainability experts to ensure each transaction meets our criteria."
Beyond climate goals to include social responsibility
To qualify as a Specialty Credit for Sustainable Development project, a transaction must fit at least one of the following categories:
- Affordable basic infrastructure and essential services
- Affordable housing
- Socioeconomic advancement and empowerment for underdeveloped areas or disadvantaged communities
Aylin Somersan Coqui, CEO of Allianz Trade: "With Specialty Credit for Low Carbon we demonstrated our commitment to supporting the net-zero transition of corporates and the broader economy. Now we take it one step further. With Specialty Credit for Sustainable Development, we address both environmental and social dimensions of sustainability, with social responsibility at its core. This holistic view reaffirms our dedication to supporting positive social impact. It is an instrumental milestone in our efforts to align financial security with the UN Sustainable Development Goals."
