The Prince of Wales says insurers must rise to the challenge of climate change.
The Prince of Wales has urged insurers throughout the world to meet the “challenge” of combating climate change by developing “innovative new policies.”
If governments are to achieve their goal of establishing a “low carbon world” by the middle of the century, Charles believes a “seismic shift of investment” is required.
His remarks came from Lloyd’s of London, the world’s most prestigious insurance market, where he announced the formation of the Sustainable Markets Initiative (SMI) Insurance Task Force to help the industry achieve greener goals.
“My sincere hope is that the industry will rise to these challenges and regard them as opportunities, that it will avoid the temptation to restrict coverage and, instead, innovate new products,” the heir to the throne told a group of underwriters and brokers gathered in Lloyd’s iconic underwriting room.
“If we are to achieve our goal of a low-carbon world by the middle of this century, we will need a massive shift in investment into new businesses and sectors.
“This shift in favor of nature, people, and the planet could be the most significant opportunity for the insurance sector in recent memory.”
“If there is one insurance policy we need, it is the one that ensures the survival of the natural systems that sustain all life on Earth – including us,” he continued.
He had previously attended a meeting of the Insurance Task Force, which included CEOs from a number of major insurance and financial services firms, including Allianz, AXA, Direct Line Group, Legal & General, and Lloyd’s of London.
The new body has a number of measures to encourage customers to rebuild damaged houses with more sustainable materials, including the inclusion of “build back better” claims clauses in home insurance policies.
The Task Force also intends to develop at least two new insurance products to cover important industries such as nuclear energy, hydrogen, and offshore wind from a potentially perilous terrain, allowing them to grow more quickly.
When Charles first walked into the Lloyd’s underwriting room, he was greeted by a spectacular atrium. (This is a brief piece.)