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New guide showcases insurer role in net zero

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A new UK publication highlights how insurance is crucial to achieving net zero carbon emissions as the industry supports green innovation across multiple sectors and geographies.

This includes insurance coverages across the hydrogen supply chain, solar energy, wind power, and carbon capture, together with parametric and microinsurance schemes protecting coffee farmers in Nicaragua and cyclones in Australia.

The Lloyd’s-chaired Sustainable Markets Initiative (SMI) Insurance Taskforce, launched in July with Prince Charles, published the Sustainable Products and Services Showcase to demonstrate the breadth and depth of support insurance provides across many industries as they transition to a sustainable future.

The Taskforce has committed to expanding coverage to support growth of the greener energy sector, such as facilitating new insurance products for electric vehicles.

“From providing solutions that support the scaling up of hydrogen production and supply, through to the critical risk management solutions needed for offshore wind and carbon capture, the SMI Taskforce is committed to supporting the urgent changes needed to achieve net zero by 2050,” Lloyd’s Chair Bruce Carnegie-Brown said.

With substantial financial resources, the global insurance industry is at the forefront of climate and transition risk mitigation and adaptation. Its ability to both insure and invest will help unlock and overcome barriers, and the Taskforce has developed a set of proposals being put before governments and regulators to further enable those activities.

AIG President and CEO Peter Zaffino says the insurance industry has been a catalyst for progress as it relates to sustainability advancements, renewable energy expansion and responsible economic growth.

“With our scale, deep knowledge and risk mitigation expertise, our shared commitment helps future-proof communities by addressing societal and environmental factors while enabling economic progress and supporting our clients as they develop transition plans to operate more sustainably.”

Taskforce members will soon be launching two new products for an even greater breadth of protection across climate-positive activities and initiatives.