Insuring forest assets with Gordon Steward

Understanding, evaluating, and avoiding or mitigating risk is a key component of any investment decision, and for forest assets it is no different. The difficulty lies where investors don’t understand (and often have inaccurate perceptions) of the risks associated with forest assets. Today, we’re joined by Gordon Steward, of Dual – Managing Director of Forestry. In our conversation, Gordon walks us through the ‘supply chain’ if you will of the insurance industry as it relates to his work with forests. He speaks to the most common geographies where forest insurance is prevalent and why, and describes the importance of sound forest management in reducing risk and making your assets more insurable.Host: Shauna Matkovich - The Forest Link Timecode Details 00:07 Introduction to Gordon and Dual  03:07 How Dual insures forest assets - an NGA 04:09 The effect of climate change & forest fires 09:12 Biggest risks that concern investors 11:00 Fire or risk management plans are crucial 14:21 Carbon investment groups 15:44 Players in forestry insurance marketplace 15:43 Under pressure to make return for investors 21:04 Get the technical underwriting rate back to where it should be 22:58 Insurance classes and loss ratios 27:45 Financial insurance triggers to lessen the exposure to risk when investing in carbon products 28:24 Fire insurance cover 30:40 Legislation to protect nature and Indigenous people’s land rights 32:29 The use of trees 35:19 Final advice Significant quotes:[24:30]            “Forestry is a very what I term spiky business, so it is prone to catastrophic fire losses.”[32:29]            “The use of trees in so many industries and processes is quite unbelievable.”[33:05]            “Wood is so strong, and we make composites so strong now, it is stronger than bricks, it is much lighter and it is carbon friendly.”Links mentioned:Dual: https://www.dualgroup.com/Sound Library:Nature by MaxKoMusic/SoundcloudSopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud      Sign up now for the ForestLink’s newsletter, where you’ll receive technical advice, reflections, and best-practice guidance to support you with your forest-linked investment strategy or business straight to your inbox. Hosted on Acast. See acast.com/privacy for more information.