A new briefing focused on Lloyd’s of London and its managing agents finds Lloyd’s is failing the climate responsibility test by allowing unchecked fossil fuel expansion and by not ensuring that its managing agents meet even the minimum standards that Lloyd’s has previously recommended.
An analysis by Reclaim Finance of Lloyd’s top 20 managing agents (who represent over 80% of the Lloyd’s market annual gross written premium), found that:
- 6 out of 20 managing agents have not taken any measures on fossil fuels.
- 8 out of 20 managing agents have not complied with Lloyd’s recommendations to stop insuring new coal mines and coal power plants.
- 9 out 20 managing agents have not complied with Lloyd’s recommendations to stop insuring new tar sands and Arctic oil and gas exploration activities.
- On the positive side, 11 of Lloyd’s top 20 managing agents have adopted its recommendations to not insure new coal, tar sands, and Arctic energy projects and 3 have gone substantially further with 1 excluding new conventional oil expansion and 2 others excluding new conventional oil and gas expansion.
Lloyd’s failure to end support for fossil fuel expansion through its market is not in line with its net zero pledge and climate science. The International Energy Agency concludes that no new fossil fuel projects beyond those approved in 2021 can be developed to reach net zero by 2050.
The worst offenders in Lloyd’s market are the 6 managing agents that have not published any public policy or taken any other steps on fossil fuels: RiverStone, Chaucer, RenaissanceRe, Ascot, Aegis and Atrium.