Lloyd's Road Map Focuses on Insurance Support for Climate Innovation

Lloyd's of London has released a "climate action road map" that includes developing new risk transfer solutions to help address climate change, including insurance products for electric vehicles.

The new risk transfer solutions will support green innovation and renewable energy investment and expansion, along with a public-private disaster resilience, response, and recovery framework which will help protect developing nations from the evolving economic and societal impacts of climate change, a Lloyd's statement said.

"Many of the actions set out in the road map will be delivered at pace in 2021, and through the Lloyd's-chaired Sustainable Markets Initiative (SMI) Insurance Task Force launched last month," the Lloyd's statement said.

Lloyd's said that to help accelerate the pace of change, the market will work with critical industries to improve the knowledge around risk landscapes and help the insurance industry adapt to meet changing customer needs as the world transitions to a sustainable future.

"As part of this work, Lloyd's is committed to expanding coverage to support the growth of the greener energy sector and will facilitate the development of new insurance products for electric vehicles," the Lloyd's statement said.

Lloyd's said that in developing its new road map it engaged insurers, Lloyd's market participants, brokers, and businesses operating across energy, transportation, and broader industry "to understand the pathway towards a lower carbon footprint and explore the challenges that require the insurance sector's support."

The insurance industry can enable and accelerate the global transition towards sustainability, Lloyd's said.

"There is an ever-more pressing need for a coordinated global effort across industries to effect the monumental transformation needed to address the climate challenge," Bruce Carnegie-Brown, chair of Lloyd's and the SMI Insurance Task Force, said in the statement. "Lloyd's is proud to play a role, together with the global insurance industry, in partnering with sectors to provide the risk management solutions and investment that will help enable and accelerate the necessary changes and drive action towards a more sustainable world."