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Press release from the Sustainable Markets Initiative 28 November 2023

Sustainable Markets Initiative's Insurance Task Force Publishes Roadmap to Supporting Green Innovation

A new report published by the Insurance Task Force explores the critical role the insurance industry is playing in the growth of clean and emerging technologies, de-risking investment and enabling recovery post climate disaster.

London, United Kingdom: The Sustainable Markets Initiative’s Insurance Task Force today published a roadmap and report that reveals how the insurance industry is supporting established technologies across the wind and solar energy industry, but non-traditional renewables like hydrogen will require additional support to match industry growth projections.

The report also outlines the growth opportunities of nascent green technologies such as carbon capture, utilisation and storage, batteries, sustainable building materials and geothermal, which are considered emerging risks by the industry and come with additional risk considerations. In 2022, Insurance Task Force member TMK partnered with Altelium to deliver the world’s first data-driven BESS warranty programme giving warranty cover for second life batteries.

As an increasing amount of capital is poured into emerging and new technologies to decarbonise and transform heavy-emitting industries, the demand for de-risking billions of dollars of investment represents a significant opportunity for the Task Force and broader insurance industry. This includes the development of risk solutions for carbon markets and the redirection of funds for sustainable investments.

The report also recognises that stewardship and post-disaster recovery as a key role of the global insurance market and the Insurance Task Force, as well as being a convener of industry and government. In 2023, Task Force member Howden concluded its inaugural year of the Global Risk and Resilience Fellowship, which paired city leaders with a deep understanding of urban resilience challenges, and insurance experts to collaboratively develop solutions that empower cities to build a safe, equitable, and sustainable future.

The report concludes by recognising the evolving risk landscape, an acceleration of global energy infrastructure development and an increased need for green financing. It calls for collaborative action between the private sector and government to drive progress as firms transition towards a more resilient and sustainable future.

John Neal, CEO of Lloyd’s and Chair of the Sustainable Markets Initiative’s Insurance Task Force said: “The insurance industry plays an important role in helping businesses, government and society manage risk and build resilience, and we will continue to collaborate to support our customers with the risk transfer solutions required in the transition to a more resilient and sustainable future.”

Jennifer Jordan-Saifi, CEO of the Sustainable Markets Initiative said:

“Our Insurance Task Force is working to co-create innovative, fit-for-purpose insurance products that support global transition and climate resilient solutions across industries and countries. The Insuring a Sustainable Future report showcases the breadth and depth of market offerings alongside promising growth opportunities in line with the Sustainable Markets Initiative’s mission to accelerate a sustainable future.”

View the full press release PDF here

Read the Insuring a Sustainable Future report

View the Insuring a Sustainable Future infographic