Lloyd’s of London has issued a Press release revealing that HRH The Prince of Wales has today launched a new partnership with the global insurance industry to drive climate change action. The Sustainable Markets Initiative (SMI) Insurance Task Force was unveiled this afternoon during a visit to Lloyd’s, the world’s leading insurance and reinsurance marketplace.
The SMI Insurance Task Force, convened by HRH and chaired by Lloyd’s, is formed of executives hailing from many of the world’s largest insurance and reinsurance companies, namely:
The task force will seek to provide an influential platform to allow the insurance sector to collectively advance the world’s progress towards a resilient, net-zero economy.
The accompanying release highlighted the critical role the global insurance industry has to play in tackling the climate crisis given its unique overview. Alongside mitigating and managing the impact of these disasters, Lloyd’s noted, the industry continues to provide financial support across multiple industries to build greater climate resilience, supporting the increased scale and speed of the transition.
The SMI Insurance Task Force also published its ‘Statement of Intent’ today, which outlined its commitment to provide climate positive financing and risk management solutions to support and encourage individuals and businesses around the world to accelerate their transition to a sustainable future.
During the visit by HRH, the Lloyd’s Lutine Bell rang out twice to mark this new global insurance industry commitment to drive climate positive action at pace, an ambition that will be instigated through several key initiatives. For commercial and individual customers, these actions include adapting and expanding coverage for offshore wind projects in reaction to rapid growth and new technologies, as well as the implementation of “build back better” claims clauses in home insurance policies to encourage sustainable rebuilding.
The task force will also work with governments to create a public-private disaster resilience, response and recovery framework, to help protect developing nations from the evolving economic and societal impacts of climate change.
In addition, the task force will develop a framework to help unlock the $30 trillion (around £21.55 trillion) plus in assets under management, in a bid to direct this capital towards investments that can propel climate-positive outcomes in both developed and developing nations.
His Royal Highness, The Prince of Wales said: “The insurance industry is exceptionally well placed to understand the impact of climate change and the damage it can cause to us all if we don’t take action now. This is why I am so pleased that a large number of the world’s leading insurance companies have joined together to identify how the insurance industry can help put nature, people and the planet at the heart of our entire economy.”
Lloyd’s chairman Bruce Carnegie-Brown noted that as the world begins to recover from COVID-19 and its significant financial and societal challenges, there is an opportunity to build back with sustainability as a foundation and guiding principle.
“Although climate change poses unprecedented systemic risk,” he said, “it is one which – through partnership and accelerated action – we have the means to address. As a task force, we are making a resolute commitment to be a catalyst for action to help create a more sustainable future through the risks we manage and the capital we invest.”
