Support climate awareness
We share our views on climate risk with our customers, including those in the developing world. Through ClimateWise we are calling for regulations to enable us to rebuild sustainably after a catastrophe.
- Inform our customers of climate risk and provide support and tools so that they can assess their own levels of risk.
- Encourage our customers to adapt to climate change and reduce their greenhouse gas emissions through insurance products and services.
- Increase the proportion of repairs that are carried out in a sustainable way through dialogue with suppliers and developers and manage waste material appropriately.
- Consider how we can use our expertise to assist the developing world to understand and respond to climate change.
How is Lloyd’s taking action and supporting climate awareness amongst our customers?
The issue of climate change can leave people with a feeling of helplessness; but action can be taken both to reduce carbon emissions; and to adapt to the coming changes. Our 360 Risk Insight report, in collaboration with Risk Management Solutions, called “Coastal communities and climate change” looks at how exposed coastal properties can take steps to reduce the risks posed by 30 cm of sea level rise to below current levels. We can encourage adaptation by reflecting reduced risk from adaptation in insurance prices: this is at the heart of the commercial property underwriting process at Lloyd’s.
Discussions and engagement
We have had ongoing discussions with claims experts this year on how to drive sustainability into that process. There is a willingness to engage on this topic but it has become clear that large scale change will flow more efficiently if there are building regulations that require sustainable rebuilding. This is why we support the ClimateWise Copenhagen Statement and also the Kyoto climate change statement from the Geneva Association, both of which call for this. We have also worked through our membership of the Finance Initiative of the United Nations Environment Program and a major sustainability project.
The developing world will be adversely affected by climate change, yet in many cases the insurance options to reduce risk, that many take for granted in the developed world, are not available. We believe that insurance solutions, if carefully implemented, can help stabilise emerging or small economies. In November 2009 we held a meeting to discuss these issues involving attendees from the Department For International Development, senior managing agents at Lloyd’s, brokers and representatives from the investment community along with the media. The event coincided with the publication of a 360 report which we hope will catalyse action.