HRH The Prince of Wales has launched his Sustainable Markets Initiative (SMI) insurance task force today during a visit to Lloyd’s of London.
Chaired by Lloyd’s, the task force is composed of executives from many of the world’s largest re/insurers and aims to provide an influential platform for the sector to collectively advance the world’s progress towards a resilient, net-zero economy.
Members include CEOs from companies such as AIG, Allianz, Aon, AXA, Beazley, Conduit Re, Hiscox, Howden, Marsh McLennan, Munich Re and Tokio Marine Kiln.
Its statement of intent includes a commitment to providing climate positive financing and risk management solutions to support and encourage individuals and businesses around the world to accelerate their transition to a sustainable future.
During his visit to the historic insurance and reinsurance marketplace, Prince Charles underlined the importance of adapting and expanding coverage for offshore wind projects, keeping pace with the rapid growth of new technologies, and efforts to “build back better” by encouraging customers to rebuild sustainably.
The SMI task force will also work with governments to establish 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 framework will be developed to help unlock the more than $30 trillion in assets under management, increasingly directing capital towards investments that drive climate-positive outcomes in both developed and developing nations.
Additionally, the task force will launch at least two new insurance products to protect priority industries, such as nuclear energy, hydrogen and offshore wind.
Sustainable processes will also be implemented across the insurance supply chain to encourage and incentivise individuals to take positive actions to live more sustainably.
Furthermore, public-private disaster resilience, response, and recovery framework will be developed to help protect developing nations from the evolving economic and societal impacts of climate change, including the effects of increasingly frequent and severe weather events.
Once developed, this solution will be rolled out across vulnerable countries to support better disaster response and recovery, with a pilot being initiated in 2021.
“The insurance industry is exceptionally well placed to understand the impact of climate change and the damage it can cause to us all if we don’t take action now,” said His Royal Highness.
“This is why I am so pleased that a large number of the world’s leading insurance companies have joined together to identify how the insurance industry can help put Nature, People and the Planet at the heart of our entire economy.”
Lloyd’s Chairman Bruce Carnegie-Brown added, “As the world begins to recover from a pandemic that has caused significant and far-reaching financial and societal challenges, it does so with an opportunity to build back with sustainability as a foundation and guiding principle.
“Although climate change poses unprecedented systemic risk, it is one which – through partnership and accelerated action – we have the means to address.
“As a task force, we are making a resolute commitment to be a catalyst for action to help create a more sustainable future through the risks we manage and the capital we invest.”