Confederation of British Industry (CBI) Vice President, Lord Bilimoria (pic), has called on the insurance industry to play its part in the battle to check climate change.
In a speech at an Aon-hosted event held at London’s Guildhall, Lord Bilimoria said: “The insurance sector helps to power growth and opportunity across the UK, employing more than 300,000 people as well as attracting talent from around the world.
“It’s one of our biggest international success stories, and bedrock of the UK’s global brand. Exports from UK financial services and insurance firms are worth around £82 billion, with UK insurers alone contributing over £29 billion to the UK economy.
“Insurance is also one of our country’s most competitive sectors globally.
“Home to Lloyds of London, our capital city is the world’s largest global hub for commercial and speciality risk controlling over US$91 billion of gross written premium.
“The openness and maturity of the London market, supported by its in-depth knowledge and skills, gives us the capacity and experience to assess, underwrite and mitigate some of the world’s greatest emerging risks.”
He added the industry has to play a full part in the creation of a sustainable global economy.
“As set out in UN Principles for Sustainable Insurance, this sector has a crucial dual role to play, helping to drive sustainable action both through the risks you cover and investments you make.
“Insurance firms across the UK, many of them represented in this room today, are rising to that challenge.
“They recognise both the opportunity and the responsibility the UK has as an economy that built its past success on the use of fossil fuels.
“Whether using the roll out of telematics to help improve pricing, particularly for our young drivers.
“Or harnessing data to deliver more accurate risk coverage for homes on or close to our flood plains here in the UK.
“Or our insurance experts applying decades of data expertise on natural catastrophes to enable businesses, economies and our global society calculate the risk of climate change.
“Your role is critical to helping us make the global shift to low carbon.
“For example, we have just learnt that the IMF will start to include climate risk in country assessments.
“And to meet the Financial Stability Board’s demand for climate-related financial disclosures we will need to assess $120 trillion of balance sheets assets held across the globe.
“We’re making strong progress, the reports from the World Economic Forum last month firmly puts sustainability centre stage in investment strategies.”