Global insurance industry and UK’s Prince of Wales launch climate change taskforce

The UK’s Prince of Wales has launched a new partnership with the global insurance industry to help drive action to tackle climate change. The new Sustainable Markets Initiative (SMI) Insurance Task Force has been convened by the Prince, is chaired by Lloyd’s and is made up of a hugely impressive list of CEOs from the world’s largest insurance and reinsurance companies. It aims to influence the insurance sector to help advance progress towards a resilient, net-zero economy. The SMI Insurance Task Force has published a statement of intent committing to provide climate positive financing and risk management solutions to support businesses and individuals around the world as they accelerate their transition to a sustainable future. The launch event at Lloyd’s said the insurance industry has a “unique view” of the climate crisis and has a “critical” role to play in combating the risk. The SMI Insurance Task Force has set out a range of commitments to help drive its agenda. One is to increase insurance product and service innovation to help commercial customers develop, invest in and scale their sustainability initiatives. This will support green innovation across multiple sectors and geographies. The taskforce will launch at least two new insurance products as part of the initiative to protect priority industries – such as nuclear energy, hydrogen and offshore wind – against an evolving risk landscape. The SMI Insurance Task Force will also work with governments to establish a public-private disaster resilience, response and recovery framework. It will help protect developing nations from the evolving economic and societal impacts of climate change. The framework will leverage the insurance industry’s unique ability to combine an insurance product with risk management and loss recovery services to increase preparedness and limit the impacts of natural events. Once developed, the solution will be rolled out across vulnerable countries to support better disaster response and recovery, with a pilot being initiated in 2021. The taskforce will also develop a framework to help unlock more than £30trn of assets under management by the global (re)insurance industry and direct capital towards investments that drive “climate-positive outcomes” in both developed and developing nations. As part of this initiative, an investment proposal will be developed through collaboration between public and private sectors, with a particular focus on renewable energy and climate transition assets to enable the transition towards a low-carbon economy. A fourth initiative will implement sustainable processes across the insurance supply chain to encourage and incentivise individuals to take positive actions to live more sustainably. This will include, for example, introducing “build back better” claims clauses in home insurance policies to encourage customers to rebuild damaged properties with more sustainable materials in support of a net-zero transition. 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,” he added. Lloyd’s chairman Bruce Carnegie-Brown said: “Although climate change poses unprecedented systemic risk, it is one which – through partnership and accelerated action – we have the means to address. As a taskforce, 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.” Full list of the SMI Insurance Task Force Membership: AIG: Peter Zaffino, president and CEO Allianz: Oliver Bäte, CEO Amwins: Scott Purviance, CEO Aon: Greg Case, CEO Ascot: Andrew Brooks, CEO AXA: Sean McGovern, CEO, AXA XL Beazley: Adrian Cox, CEO Conduit Re: Neil Eckert, CEO Direct Line Group: Penny James, CEO Hiscox: Bronek Masojada, CEO Howden Group: David Howden, CEO Legal & General: Nigel Wilson, CEO Lloyd’s: John Neal, CEO Marsh McLennan: Dan Glaser, president and CEO Munich Re: Joachim Wenning, CEO Phoenix: Andy Briggs, group CEO Tokio Marine Kiln: Brad Irick, CEO

Global insurance industry and UK’s Prince of Wales launch climate change taskforce

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