LIIBA: Brokers ideally positioned to drive insurance industry’s Net Zero efforts

London’s specialist brokers possess a unique set of skills and expertise that will enable businesses to make the changes necessary to achieve the net reduction in carbon emissions required in the push to Net Zero, according to a paper published by the London & International Insurance Brokers’ Association.

The paper, Our Role in Net Zero is being sent to the UK government and regulators, the insurance industry, wider City institutions and EIOPA to help further the discussion with government and other stakeholders on the insurance industry’s role in achieving Net Zero.

It says brokers’ understanding of climate risk and the risks associated with organisational transformation, such as the introduction of major new technology systems, 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.”

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