New survey identifies Climate Risk & ESG as the two emerging risks for the London Market.
Climate Risk and wider ESG issues were identified as being the top emerging risks facing London Market insurers in a new survey by the IUA.
The survey, which had responses from members across 44 London Market companies, showed that 45% of respondents answered climate risk in response to the question: “what are the most important emerging risks for insurance coverage?” This was up from 7% in the previous survey in 2017.
When asked about the top three challenges facing your company, 27% of respondents identified climate risk and ESG. This was followed by regulatory change (22%) and challenges raised by the COVID-19 pandemic such as remote working (17%).
In the previous survey in 2017, soft market, pricing and Brexit were the chief concerns for the London market.
On the back of Lloyd’s drive towards digitalisation, data standards were regarded as the most important issue for the digital transformation of the London Market central services. Claims processing was also raised as an issue.
Dave Matcham, CEO of IUA, commented on the launch of the survey results:
“Companies are focused on providing cover for more extreme weather events and helping clients manage transition risk as the global economy moves to a more sustainable operating model”.