’Insurance has a vital role to play in building resilience against climate-related risks,’ says chief executive 

Lloyd’s of London has teamed up with the United Nations Capital Development Fund (UNCDF) to increase insurance access for climate-vulnerable countries. 

A statement released yesterday (21 September 2023) said the partnership would see insurance products be designed to help deliver financial resilience against “climate shocks” in small island developing states (SIDS) and least developed countries (LDCs).

Solutions will initially be developed across Fiji and the Pacific Islands and later be replicated in other regions, including Asia and parts of Africa.

Mourad Wahba, officer-in-charge of the UNCDF, said: “Insurance can serve as a powerful tool, not only in support of climate resilience, but also to secure the delivery of the sustainable development agenda in the world’s most vulnerable countries.

”To deliver on this promise, we will need innovation and collaboration.”

Task force

This came following the launch of the sustainable markets initiative insurance task force of the Disaster Resilience Framework for Climate-Vulnerable Countries at COP26. 

As chair of the task force, Lloyd’s will collaborate with the UNCDF to identify and address potential policymaking challenges.

John Neal, chief executive of Lloyd’s, said: “Insurance has a vital role to play in building resilience against climate-related risks.

”This partnership with the UNCDF underpins the sustainable markets initiative’s mission to develop a coordinated global effort to mitigate climate and natural catastrophe risks as we progress towards a more sustainable future.”