Key issues

 

Lloyd’s is aiming to provide insight into emerging risk. The scientific work on this website is not original and our objective is to present the facts from the most reliable sources in a way which we hope will be helpful for those within and out with the insurance industry.1 Here are some of the key issues we have identified for the insurance industry from our work.

  1. Too little but not yet too late. The insurance industry must do more now to understand and actively manage climate change risk.

  1. Recent events have shown capital and pricing models to be wanting. We must regularly update and recalibrate our models to keep pace with reality.

  1. Windstorm trends will put particular pressures on businesses and their insurers.

  1. Climate change means exposures are changing and new ones emerging. Insurers must regularly review and communicate conditions of coverage.

  1. Insurers must prepare for the impact of climate change on asset values. Underwriting for profit will be key.

  1. Effective partnership with business and government will be key to managing risk. The insurance industry must engage now.

1Lloyd's wish to express our thanks and encouragement to scientists around the world who are carrying out this vital research. We would especially like to thank Climate Change Risk Management, who have advised us on scientific elements on this website.