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Insurers well-placed to track climate change: Prince

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The Prince of Wales says the insurance industry is “exceptionally well placed to appreciate the impact of a changing climate” and has a “unique and deep understanding of the evolving impacts and risks”.

He was speaking during a visit to Lloyd’s in London last week when he launched a new sustainable insurance taskforce. The market’s famous Lutine Bell was rung twice to herald the new global insurance industry commitment to drive climate-positive action.

The Sustainable Markets Initiative (SMI) taskforce, convened by Prince Charles in collaboration with Lloyd’s, is made up of top insurance and reinsurance executives and aims to collectively influence progress towards a net-zero economy.

In a statement of intent, it committed to providing climate-positive financing and risk management solutions.

“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,” Prince Charles 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.”

The taskforce will develop a framework to direct capital towards investments that drive climate-positive outcomes, including expanding coverage for offshore wind projects and “build back better” claims clauses in home insurance policies.

It will also work with governments to help protect developing nations from the impacts of climate change.

“I can only say how grateful I am that so many different insurance companies, some of the biggest in the world, have come together to help avert the accelerating disaster of climate change,” the Prince said.

“The scale of the challenge that insurers face caused by new types or severity of climate-related events cannot be underestimated.

“My sincere hope is that the industry will rise to these challenges and regard them as opportunities, and that it will avoid the temptation to restrict coverage but, rather, innovate new products.”