- Support and undertake research on climate change to inform our business strategies and help to protect our customers’ and other stakeholders’ interests.
- Support more accurate national and regional forecasting of future weather and
- catastrophe patterns affected by changes in the earth’s climate.
- Use research and improve data quality to inform levels of pricing, capital and reserves to match changing risks.
- Evaluate the risks associated with new technologies for tackling climate change so that new insurance products can be considered in parallel with technological developments.
- Share our research with scientists, society, business, governments and NGOs through an appropriate forum.
How is Lloyd’s taking action and leading in risk analysis?
- Lloyd’s has been a leader in risk analysis during its 320 year history; it is a fundamental part of underwriting risks from hurricane catastrophe covers to wind farms.
Our 360 Risk Insight project at Lloyd’s has focused on climate change as a core topic for some years. In our first paper “Adapt or bust” we considered the implications on insurers ranging from property losses, through terrorism and political risk to the assets on our balance sheet.
- We have sponsored debates on the subject, first in 2006 at a conference chaired by Sir Trevor McDonald where speakers such as Johan Eliasch urged attending business leaders to act on climate change.
In 2009 we co hosted conferences with NATO in the UK and US where the security implications of climate change were discussed. A 360 Risk Insight report launched prior to the event, in collaboration with the International Institute of Strategic Studies, entitled “Climate change and security” explains the many security, economic, political and human issues we could face in the coming years.
We have been taking the debate around the world, for example in November 2009 Lloyd’s hosted an event in Brazil considering the impacts of climate change on extreme weather, sea level rise, agriculture and energy security.
- We firmly believe that sharing our research strengthens the industry. We co-fund the Lighthill Risk Network (LRN) which has held events on London flood risk, the impact of hurricanes on offshore energy and the implications of climate change to European windstorm. In May 2009 the LRN co-hosted an event with ClimateWise on sharing climate research.
These are just a few examples of how we have and will continue to lead risk analysis. For more details please click here.
