LMG reveals how the London market is supporting net zero projects

The majoirty of firms operating in the London market are planning to introduce new insurance products designed to help enable the growth of green projects, a new report has revealed.

The report, which was published by the London Market Group (LMG) yesterday (9 October 2023), is aimed at showcasing the role insurance firms play in unlocking, promoting and facilitating the transition to net zero.

Entitled How insurance unlocks the growth of green projects, the report revealed that 80% of London market participants provide insurance products that support the operation and maintenance of green projects.

And it added that some 90% were planning to introduce new ones in the next 12 months.

Sean McGovern, chair of the LMG and chief executive of Axa XL’s UK and Lloyd’s arm, said: “The transition to a net zero world will affect our clients’ business models, product needs and risk characteristics.

”While people often talk about green finance as the main driver of these projects, insurance is a crucial but often overlooked partner.”

’Dedicated partner’

This came after Biba chief executive Graeme Trudgill told Insurance Times that it was “everyone’s” responsibility in the insurance industry to ensure climate targets were being met.

He added that becoming net zero was not one person’s responsbility and that firms were at “different stages of their journey”.

The new report from the LMG, which was wrtitten by Oxbow Partners, contains insights from brokers, syndicates and company market insurers about how insurance has supported their green projects.

“Insurance isn’t merely an occasional player – it is a dedicated partner,” McGovern said.

”These endeavours require consistent and multi-faceted support and, with its vast expertise in managing risks across diverse sectors, the insurance industry is well-positioned to foster confidence in green projects throughout their lifespan”.