LONDON (Reuters) – Lloyd’s of London said it has launched a consultation amongst member firms on how to insure the low-carbon transition over the next three years across underwriting, investments, exposure management and capital and reserving.
The insurance market said that on underwriting, it expects managing agents to provide sustainability strategies that are “fit for purpose” and will assess them across areas including governance, transition planning and emissions measurement.
Starting next year, it would look to begin deepening the quality of data collected around flood risk and climate-related liability risk, it said in a “roadmap” released on Thursday.
Lloyd’s said it would carry out a market survey in 2024 to see to what extent managing agents were embedding climate change considerations into their reserving and capital models; and provide more guidance on responsible investment policies.
“Our aim is to give our market participants greater confidence in setting, embedding, and operationalising their own individual climate strategies, through the transition and beyond,” said Lloyd’s CEO, John Neal.
The consultation will be open until the end of January 2024.
(Reporting by Simon Jessop; editing by David Evans)