Task force members have developed a set of proposals to put before governments and regulators, aiming to combat climate change
As COP26 approaches, the Insurance Task Force (ITF) has published a Sustainable Products and Services Showcase as part of His Royal Highness The Prince of Wales’ Sustainable Markets Initiative (SMI).
Created in June 2021, the SMI Insurance Task Force was convened by Prince Charles and is chaired by Lloyd’s of London. The task force aims to provide an influential platform for the insurance industry so that it can collectively work to advance the world’s progress towards a net zero economy.
Its showcase, published on 13 October 2021, illustrates the risk management and transfer solutions currently available to the market, highlighting their role in underpinning and safeguarding the efforts of multiple industries as they work to drive climate positive action.
It includes insurance coverages across the hydrogen supply chain, solar energy, wind power and carbon capture, alongside parametric and microinsurance schemes protecting coffee farmers in Nicaragua and mitigating cyclones in Australia.
The task force has subsequently developed a set of proposals to put before governments and regulators, to further enable climate and transition risk mitigation and adaption.
Bruce Carnegie-Brown, chair of the SMI Insurance Task Force and Lloyd’s, said: “The launch of this [showcase] demonstrates the breadth and depth of support the global insurance industry is already providing to its customers across multiple industries around the world as they transition to a sustainable future.
“The SMI Task Force is committed to supporting the urgent changes needed to achieve net zero by 2050 and will continue to innovate in the products and services that we provide to critical industries to achieve this goal.”
Climate vulnerable communities
As part of the announcement, the SMI Insurance Task Force has revealed it will soon be unveiling an adaptable and scalable framework that aims to improve disaster response and recovery in climate vulnerable economies.
The framework will detail how the ITF plans to boost systems change across its network of suppliers to drive more sustainable outcomes for its customers.
The ITF also stated that its members will soon launch two new products, with the aim of providing an even greater breadth of protection across climate positive initiatives and activities.
The force’s membership features 20 individuals, including AIG president and chief executive Peter Zaffino, Allianz chief executive Oliver Bäte, Lloyd’s chief executive John Neal, Direct Line Group chief executive Penny James and Insurance Development Forum secretary general Ekhosuehi Iyahen.
Zaffino added: “The insurance industry has been a catalyst for progress as it relates to sustainability advancements, renewable energy expansion and responsible economic growth.
“Our industry is investing in global education to provide the clients and industries we serve with sensible paths toward a cleaner future.
“With our scale, deep knowledge and risk mitigation expertise, our shared commitment helps futureproof communities by addressing societal and environmental factors while enabling economic progress and supporting our clients as they develop transition plans to operate more sustainably.”