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Forest Invest

Insuring forest assets with Gordon Steward

Ep. 3

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:
  1. Nature by MaxKoMusic/Soundcloud
  2. Sopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud      

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