The interior of the Lloyd's of London building is seen in the City of London financial district in London, Britain, April 16, 2019. Picture taken April 16, 2019. REUTERS/Hannah McKay/File Photo Acquire license rights
LONDON, Nov 23 (Reuters) - Lloyd's of London said it has launched a consultation among member firms on how to ensure the transition to a low-carbon economy over the next three years on underwriting, investments, exposure and capital management and Bookings.
The insurance market said that, at the time of underwriting, it expects managing agents to provide sustainability strategies that are โfit for purposeโ and will evaluate them in areas including governance, transition planning and emissions measurement.
Starting next year, it would look to begin digging deeper into the quality of data collected on flood risk and climate-related liability risk, it said in a "roadmap" published Thursday.
Lloyd's said it would carry out a market study in 2024 to see the extent to which managing agents were incorporating climate change considerations into their reserve and capital models; and provide further guidance on responsible investment policies.
"Our aim is to give our market participants greater confidence in establishing, incorporating and operationalizing their own individual climate strategies, during the transition and beyond," said Lloyd's CEO John Neal.
The consultation will be open until the end of January 2024.
Reporting by Simon Jessop; edited by David Evans
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