London’s insurance brokers have a vital role to play in helping the world make the transition to a Net Zero economy by 2050, a new policy paper published by broker representative body LIIBA argues.
Our Role in Net Zero makes the case that London’s specialist brokers, working closely with insurers, possess a unique combination of skills and expertise that will enable businesses to make the changes necessary to achieve the net reduction in carbon emissions required. In the paper, LIIBA also highlights brokers’ role in delivering the UK government’s ambition to position the UK globally at the forefront of green finance.
According to LIIBA, it is brokers’ understanding of climate risk and the risks associated with organisational transformation such as the introduction of major new technology systems that make them ideally placed to assist clients in reducing their carbon emissions.
Christopher Croft, CEO of LIIBA, said: “Our members will be at the forefront of the drive to achieve Net Zero by 2050. Today, the climate crisis is the biggest challenge facing our society. Net Zero is the government’s response. Across their value chain, businesses need to make deep cuts to greenhouse gas emissions and remove residual emissions from the atmosphere. Attaining that goal will require radical change by organisations – and they’ll need help.
“Insurance and brokers in particular have a key role to play because of their unique position in the economy. Brokers understand balance sheet risk, they’re involved in huge infrastructure projects, international transportation networks and they’ve developed a detailed world-leading understanding of climate risk. Their role in this change will be critical. That’s why we’re publishing this paper to start the conversation with the London market and our colleagues around the London Market Group’s table. London and international brokers are committed to making this a reality.
“It’s also important to recognise that there will be significant commercial opportunities for the market arising from the drive for Net Zero.”
Our Role in Net Zero is being sent to the UK government and regulators, the insurance industry and wider City institutions. It will also be sent to the European regulator EIOPA. As well as hosting a series of events focusing on the document, LIIBA plans to engage in discussion with government and other stakeholders to further map out the insurance industry’s role in achieving Net Zero.
Copies of Our Role in Net Zero are available for download from LIIBA’s website here.