Managing climate risks key priority for London market in 2021
Managing climate risks will remain a key priority for the London company market in 2021 with the International Underwriting Association (IUA) looking to reassess its strategic objectives in order to play an "active and vocal role" in the shift towards a green economy.
The association has revealed its business plan for 2021, which includes a "strategic review" and a "complete reassessment" of the way IUA supports its member firms in light of the COVID-19 pandemic.
Last year, the IUA engaged in discussions with the chief executives of its member companies to examine the future direction of the association. The results of this exercise will be seen in 2021, it said.
IUA stated that its Climate Risk Committee, made up of member practitioners, will work with regulators as the industry’s supervisory framework in this area is developed. It will also examine the role of general insurance in the global political and economic drive towards reducing carbon emissions.
The business plan for 2021 will also include a number of initiatives to expand the association’s representation of technical underwriting and claims matters for specialty lines. For example, addressing the pressures on professional indemnity cover for solicitors and independent financial advisors.
On matters of public policy the IUA said it will continue to push for maximum regulatory cooperation between the UK and EU and promote the broadest possible equivalence rulings under Solvency II for reinsurance and group supervision.
IUA representatives will participate in vital transformational workstreams of the Future at Lloyd’s Blueprint Two project, focussing strongly on whole market solutions for claims, data and mid and back office.
Dave Matcham, chief executive of the IUA, said: “This year will see the UK host the United Nations Climate Change Conference of the Parties (COP26), bringing the climate debate into sharp focus. Insurers can be extremely influential in supporting the growth of a green economy and the IUA intends to play an active and vocal role.”
“We will be looking at how we operate all our practitioner groups examining underwriting, claims, public policy and market modernisation issues,” he added. “An important part of this process will be to ensure the IUA can flexibly accommodate the combined remote working and office-based future now being contemplated by many firms.”
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