Lloyd’s insurers want more information on clients’ transition risks

Supply chain risks associated with disruptions to global trade from tariffs/trade wars will be some of the hottest talking points at the Airmic conference this year, Paul Davenport, finance and risk director at the Lloyd’s Market Association, has predicted.

But from a personal perspective, he is also very interested in companies’ transition to net zero. He is participating in a panel discussion on climate change which includes this topic. “Insurers in the Lloyd’s market want to get closer to clients (via their brokers) to understand their specific transition challenges and provide relevant risk transfer support,” he said. “Insurers also want to be involved at the early stages in development of new technology to help develop safety and risk management best practice.”

He said some Lloyd’s insurers do express concerns over a lack of availability of information on how clients are approaching the transition, and what their roadmap of future transition looks like.

“We are supporting the Lloyd’s market by collaborating with experts in firms such as KPMG on understanding how transition to net zero is affecting the risks to assets being covered by insurance. We are also promoting the use of the ‘TCX’ risk code in Lloyd’s for transition-related innovative products,” he noted.

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