Paris-headquartered insurer Allianz Trade has launched a credit insurance product aimed at projects that generate positive social outcomes.
Specialty Credit Social2Social offers non-payment and political risk insurance to corporates, financial institutions, export credit agencies and multilaterals taking part in projects that address social issues.
The product can also cover risks such as contract interruption or confiscation to enable firms to manage their global exposures, the insurer said.
Projects can include affordable basic infrastructure and essential services like schools or hospitals, affordable housing, or socioeconomic advancement for underdeveloped areas or disadvantaged communities.
Allianz Trade will hold all the premiums received from Social2Social policies as investments in certified social bonds.
This creates a “circular model that continually fuels social progress”, said Florence Lecoutre, Allianz Trade’s board member for sustainability, data analytics and AI, human resources, compliance and communication.
Pierre Lamourelle, deputy global head of specialty credit and midterm at Allianz Trade, said: “Managing short-to-long-term transactions, political risk and highly concentrated risks from large contracts and structured deals is becoming more complex.
“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 Social2Social.”
Allianz Trade chief executive, Aylin Somersan Coqui, added that Social2Social was similar to the insurer’s Specialty Credit Green2Green product, first launched in 2020.
Designed to plug the insurance gap for sustainability and energy transition projects, Green2Green was certified under the Allianz Group’s overarching sustainable solutions framework in 2024.
Somersan Coqui said the insurer was “proud” to also see Social2Social certified as a sustainable solution by parent company Allianz Group.
The new launch is “an instrumental milestone in our efforts to align financial security with sustainability principles”, she added.
“We first marked our commitment to support the net-zero transition of corporates and the overall economy, and we now take it one step further.”
