Through these initiatives, the Climate Risk Working Group, in collaboration with the LMA Sustainability Committee, helps to shape industry best practices and support the Lloyd’s market in managing the risks and opportunities presented by climate change.
Transition risks – Assessing the impact of technological advancements and industry shifts on risk exposure. This includes evaluating how changes such as new fuel sources and building materials affect insurance wordings, reserving, and capital models.
Litigation risk – Collaborating with the LMA’s Environmental and Climate Litigation Committee (ECLIC) and Lloyd’s to translate horizon-scanning insights shared into risk exposure assessments. This ensures the market is prepared for emerging climate-related litigation trends and potential liabilities.
Regulatory developments – Enhancing market awareness of upcoming climate regulatory and disclosure requirements, while developing best practice frameworks for climate scenario analysis, reporting, and disclosures.
