For a few dollars more: The fossil fuel policies of Lloyd’s managing agents
Lloyd’s of London, the world’s largest and oldest insurance market, is holding back the insurance industry’s climate action. While Lloyd’s presents itself as the insurance market for the transition, Lloyd’s refuses to take responsibility for stopping its insurers supporting fossil fuel expansion. Lloyd’s is refusing to use its regulatory power in its own market to ask its managing agents to stop insuring the development of new fossil fuel projects.
Key findings:
managing agents were assessed by Reclaim Finance.
- Twenty-eight are considered ‘ultimate laggards’ because they have no policy on fossil fuel expansion: this is the case, for example, for Chaucer Syndicates.
- Eighteen managing agents are identified as “slow movers”, including Beazley Furlonge, Hiscox Syndicates, MS Amlin Underwriting and Tokio Marine Kiln Syndicates, as they have a commitment to stop underwriting risks related to new coal mines or new coal plants, but no commitment to stop underwriting risks related to new oil and gas fields.
- Only 5 of the 51 managing agents have policies restricting cover for new coal projects and new oil & gas fields.
Reclaim Finance urges Lloyd’s managing agents to adopt ambitious policies to stop insuring fossil fuel expansion, in line with Lloyd’s market-wide commitment to reach net zero by 2050. This includes no longer providing (re)insurance cover for risks associated with new coal projects, new oil and gas projects or new liquefied natural gas export terminals.
The NGO is asking Lloyd’s of London to use its regulatory power in its own market to define a clear and binding policy on the issue of fossil fuel expansion for all its managing agents.