Beazley indicated to Reclaim Finance a few hours before the release of the report to have decided to align with Lloyd’s policy and no longer underwrite new coal mines and plants as well as new tar sands, or arctic energy exploration projects, or companies which generated more than 5% revenues from these activities.<\/p>\n
This information, which can be found on Beazley\u2019s TCFD report<\/u><\/a> recently updated in March 2023, was indicated to Reclaim Finance as the first response to a series of emails sent to them from January 2023 to the day before the release of the report.<\/p>\n We acknowledge and welcome Beazley\u2019s commitment while we call on the managing agent to integrate these commitment into a formal sector policy. We also call Beazley to adopt further measures to align with best practices, as defined by Munich Re and Argenta managing agents and with the IEA NZE\u2019s projections regarding the end of new oil and gas fields and new LNG terminals 1.5\u00b0C.<\/p>\n The report The Good, The Bad and The Ugly, The Fossil Fuel policies of Lloyd\u2019s Managing Agents is being updated to take into account Beazley\u2019s recent commitments and will be available soon.<\/p>\n Updated on 06.04.2023 following Beazley’s announcements<\/p>\n<\/div>\n<\/div><\/div><\/div> \u00a0<\/strong><\/p>\n 6 April 2023 – Lloyd’s of London (Lloyd\u2019s), the world\u2019s largest insurance market, is failing to meet the litmus test for climate responsibility of stopping fossil fuel expansion, according to new analysis by Reclaim Finance of Lloyd\u2019s top managing agents. Despite its net zero pledge, Lloyd\u2019s has no policy in place to end fossil fuel expansion and has failed to impose its very limited policy on its managing agents. Reclaim Finance, a member of the Insure our Future network [1], is urging Lloyd’s of London to act on its net zero commitments and strengthen its measures, including additional sanction mechanisms to encourage its managing agents to act.<\/strong><\/p>\n<\/div> Lloyd\u2019s\u00a0 fossil fuel policy has so far only focused on coal and some unconventional oil and gas projects, which is inconsistent with the net-zero pledge it has made as a member of the Net Zero Insurance Alliance (NZIA) [2]. To reach a net zero goal by 2050 following a 1.5\u00b0C pathway, the International Energy Agency (IEA) has projected the end of the development of new fossil fuel production projects beyond those approved in 2021.<\/p>\n Lloyd\u2019s, which operates through its managing agents, does not make access to its market conditional on the adoption of policies that exclude insuring coal expansion and it has yet to require any measures to address conventional oil and gas expansion.<\/p>\n Reclaim Finance analysis of Lloyd\u2019s top 20 managing agents [3], who represent over 80% of the Lloyd’s market annual gross written premium, found that:<\/p>\n Despite recent extreme weather events which cost the Lloyd\u2019s market billions, the world’s largest insurance market appears to be unconcerned by the consequences of the climate crisis. These results show that Lloyd\u2019s has done nothing to turn its net zero commitment into a reality. Lloyd\u2019s fine words must be turned into actions that drive change throughout its market. This is the only way in which it can deliver on its net zero commitments.<\/i><\/p>\n<\/div> Ariel Le Bourdonnec, Insurance Campaigner at Reclaim Finance<\/b><\/strong><\/p>\n<\/div><\/div><\/div> On the contrary, two managing agents, Munich Re Syndicate and Argenta Syndicate have gone significantly further and committed to stop insuring new oil and gas fields [5]. This proves that it is possible for any managing agents to take their responsibilities and adopt the measures that are required on fossil fuel expansion to meet their net zero pledges.<\/p>\n Lloyd’s of London, which in 2018 represented 40% of the global insurance premiums linked to the energy sector, is one of the remaining members of the NZIA still willing to underwrite the expansion of coal, oil and gas. Its inadequate policy is in stark contrast to the best practices of many of its NZIA peers who have committed not to insure new coal or new oil and gas projects [6].<\/p>\n<\/div><\/div><\/div> Lloyd\u2019s is not taking climate science seriously, it is undermining the climate action of its peers and Lloyd\u2019s climate pronouncements, which it presumably made to attract investors, are laid bare by its managing agents’ lack of action. Lloyd\u2019s greenwashing will not help solve the climate crisis, worse, it is driving its industry into the wall by fueling more losses due to more severe climate risks<\/i>.<\/p>\n<\/div> Lindsay Keenan, European Coordinator, Insure Our Future<\/b><\/strong><\/p>\n<\/div><\/div><\/div> According to the latest IPCC findings [7], postponing the implementation of mitigation and adaptation measures will result in an increase in losses and damages due to increased climate risks. In 2022, the Lloyd’s market made \u00a3800 million in net losses , which is \u00a33 billion less than in 2021, in part due to the increasing intensity of climate catastrophes such as Hurricane Ian [8].<\/p>\n Reclaim Finance calls on Lloyd\u2019s to set and monitor the adoption of a clear framework for its managing agents that immediately requires Lloyd\u2019s managing agents to align their practices with its current and future policy on fossil fuels within a year after adoption by Lloyd\u2019s, and set enforcement mechanisms and sanctions if they do not comply after the one-year deadline.<\/p>\n<\/div>\n
Contacts:<\/h2><\/span>
\n
Notes:<\/h2><\/span>
\n
Read also<\/h2><\/div>