We encourage collaboration. Risks are changing and we intend to keep pace.
ClimateWise sub principles
- 1.1 Support and undertake research on climate change to inform our business strategies and help to protect our customers’ and other stakeholders’ interests. Where appropriate share this research with scientists, society, business, governments and NGOs in order to advance a common interest.
- 1.2 Support national and regional forecasting of future weather and catastrophe patterns affected by changes in the earth’s climate.
- 1.3 Use research and improve data quality to inform levels of pricing, capital and reserves to match changing risks.
- 1.4 Evaluate the risks associated with new technologies for tackling climate change so that new insurance products can be considered in parallel with technological developments.
How is Lloyd's leading in risk analysis?
Leading in risk
Lloyd’s continues to work towards improving the analysis of risk. The Emerging Risks and Research team worked with experts in food security and sustainable development economics to produce a report entitled Food System Shock. The Emerging Risks and Research team has produced a number of reports on this issue, which can be found in the Emerging Risks reports library.
Lloyd’s is proud of our relationships with universities and research organisations. Detailed understanding of risk is essential to everything we do at Lloyd’s, and the Science of Risk prize is designed to challenge researchers and Lloyd’s insurers to stretch their thinking. For researchers, the prize offers an opportunity to translate original work for a business audience. For insurers, the prize generates insights in to some of the most challenging risk management problems they encounter.
The 2014 competition focused on two broad categories: climate change and natural hazards. The winning climate change submission provided a valuable contribution on a topic of great significance for insurers. Dr Erwann Michel-Kerjan’s entry ‘Evaluating Flood Resilience Strategies for Coastal Megacities’ described novel approaches that may help to shape public policy and improve the affordability of flood insurance.
Sharing our research
We firmly believe that sharing our research strengthens the industry. Lloyd’s continues to work towards improving the analysis and quantification of less or non-modelled regions and risks, including climate and environmental issues. As the climate changes, catastrophe models will have an increasingly important role to play - the ability to tap into multiple sources of expertise will be invaluable. In 2014 Lloyd’s released a report on Catastrophe Modelling and Climate Change. Lloyd’s continues to promote it and to generate interest in the findings.
These are just a few examples of how we have and will continue to lead risk analysis. Find out more about our progress with ClimateWise, and read more of our risk reports here.