HRH The Prince of Wales has partnered with the insurance industry to launch his Sustainable Markets Initiative (SMI) Insurance Task Force in a bid to combat climate change.
Convened by HRH and chaired by Lloyd’s, the new task force includes executives from many of the world’s largest insurance and reinsurance companies, providing an “influential platform for the sector to collectively advance the world’s progress towards a resilient, net-zero economy”.
The SMI Insurance Task Force has now published its Statement of Intent, 2hich says it will commit 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 a visit to Lloyd’s by HRH yesterday (24 June), the Lloyd’s Lutine Bell rang out twice to mark the new and “significant” global insurance industry commitment to drive climate positive action through a number of key initiatives.
For commercial and individual customers, these actions include adapting and expanding coverage for offshore wind projects in response to rapid growth and new technologies, alongside the implementation of “build back better” claims clauses in home insurance policies to encourage customers to rebuild sustainably.
The 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.
In addition, to support the rapid growth of green projects and innovation, the SMI Insurance Task Force will develop a framework to help unlock more than $30tn (£22tn) in assets under management, increasingly directing capital towards investments that drive climate-positive outcomes globally.
His Royal Highness, The Prince of Wales said: “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.
“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.”