Prince Charles Launches Partnership with Insurance Industry to Tackle Climate Change

His Royal Highness the Prince of Wales launched his Sustainable Markets Initiative (SMI) Insurance Task Force during a visit today at Lloyd’s.

The SMI Insurance Task Force, convened by Prince Charles and chaired by Lloyd’s, is comprised of executives from many of the world’s largest insurance and reinsurance companies, providing an influential platform for the sector to collectively advance progress towards a resilient, net-zero economy. (See below for a list of the members of the SMI task force).

The global insurance industry has a critical role to play as a result of its unique view of the climate crisis – via decades “of providing support to communities, businesses and economies in the face of increasingly severe and frequent weather events…,” said Lloyd’s in a statement.

The SMI Insurance Task Force published its Statement of Intent, which commits to provide 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.

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 SMI Insurance 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.

To support the rapid growth of green projects and innovation, the SMI Insurance Task Force will develop a framework 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.

“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,” commented HRH the Prince of Wales. “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.”

During the visit by Prince Charles, the Lloyd’s Lutine Bell rang 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.

The Lutine Bell has traditionally been struck on the news of an overdue ship — once for the ship’s loss (or for bad news), and twice for the ship’s return (or good news). The bell more recently has been rung to mark special occasions. In 1858, the bell was recovered from the HMS Lutine, a ship that sank in 1799 off the Dutch coast.

The SMI Insurance Task Force’s members are:

• AIG: Peter Zaffino, president and CEO
• Allianz: Oliver Bäte, CEO
• Amwins: Scott Purviance, CEO
• Aon: Greg Case, CEO
• Ascot: Andrew Brooks, CEO
• AXA: Sean McGovern, CEO AXA XL
• Beazley: Adrian Cox, CEO
• Conduit Re: Neil Eckert, executive chairman
• Direct Line Group: Penny James, CEO
• Hiscox: Bronek Masojada, CEO
• Howden Group: David Howden, CEO
• Legal & General: Nigel Wilson, CEO
• Lloyd’s: John Neal, CEO
• Marsh McLennan: Dan Glaser, president and CEO
• Munich Re: Joachim Wenning, CEO
• Phoenix: Andy Briggs, group CEO
• Tokio Marine Kiln: Brad Irick, CEO