London’s insurance brokers have been told to join the front line in the global economy’s fight against climate change.
IN a new hard hitting report LIIBA, the London market’s broker association has said brokers have a vital role to play in helping the world make the transition to a Net Zero economy by 2050.
The call has been backed by many in the market who said the time for action was now and that brokers were in the idea position to drive London’s response.
LIIBA’s policy paper, Our Role in Net Zero, makes the case that London’s specialist brokers, working closely with insurers, possess a unique combination of skills and expertise that will enable businesses to make the changes necessary to achieve the net reduction in carbon emissions required. In the paper, LIIBA also highlighted brokers’ role in delivering the UK government’s ambition to position the UK globally at the forefront of green finance.
The document has been sent to the UK government and regulators, the insurance industry and wider City institutions. It will also be sent to the European regulator EIOPA.
According to LIIBA, it is brokers’ understanding of climate risk and the risks associated with organisational transformation such as the introduction of major new technology systems that make them ideally placed to assist clients in reducing their carbon emissions.
LIIBA CEO Christopher Croft (pic) said: “Our members will be at the forefront of the drive to achieve Net Zero by 2050. Today, the climate crisis is the biggest challenge facing our society. Net Zero is the government’s response. Across their value chain, businesses need to make deep cuts to greenhouse gas emissions and remove residual emissions from the atmosphere. Attaining that goal will require radical change by organisations – and they’ll need help.
“Insurance and brokers in particular have a key role to play because of their unique position in the economy. Brokers understand balance sheet risk, they’re involved in huge infrastructure projects, international transportation networks and they’ve developed a detailed world-leading understanding of climate risk. Their role in this change will be critical. That’s why we’re publishing this paper to start the conversation with the London market and our colleagues around the London Market Group’s table. London and international brokers are committed to making this a reality.
“It’s also important to recognise that there will be significant commercial opportunities for the market arising from the drive for Net Zero.”
Dominic Christian, Chair of ClimateWise and Global Chairman, Reinsurance Solutions at Aon backed the call.
“The acknowledgement of the role of the insurance industry in restraining climate change and environmental damage is a welcome move by the London and International Insurance Brokers’ Association,” he explained. “As we head towards this year’s UN COP26 held in the UK, it is vital the insurance industry raises its head above the parapet with significant ambition and rapidly moves warm words to meaningful action on climate change.
“ClimateWise continues to support engagement of the whole value chain to encourage joined up action that is nature- and climate-positive. Brokers are the connective tissue in this process, able to ensure informed decisions are at the heart of some of the projects that will shape our future economies and our ability to build back better.”
Nick Dunlop, Managing Director, Willis Towers Watson, added: “We are delighted to support the LIIBA paper which calls for a Net Zero economy by 2050. The LIIBA paper is fully aligned with the launch of the “Climate Transition Pathway”, which provides an accreditation framework supporting clients transition to a net zero economy and aims to achieve a more sustainable future.”
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