INSURERS 'CAN EASE CLIMATE-RELATED GEOPOLITICAL TENSIONS'

Geopolitical tensions arising from climate change can be addressed by insuring regional energy and agricultural projects, Lloyd’s said. In a new report produced in collaboration with the Cambridge Centre for Risk Studies (CCRS), Lloyd’s explored ways to ease tensions between national power blocs by providing risk solutions that can bind the international community together. These include helping multinationals manage their increased exposure to political risk through the energy transition towards net zero but also providing available capital to underpin confidence in transition projects and ease construction problems that could strain geopolitical relations and interdependencies.