The appointment of Patrick Tiernan as the new CEO of Lloyd’s could mark a turning point for insurance policy overall. The historic London market announced it will no longer discourage underwriting for projects linked to coal and other fossil fuels.
This is no minor development, considering that in recent years Lloyd’s has been at the centre of debates and commitments around the energy transition, while also facing increasing pressure from environmental organisations.
The ‘apolitical’ stance at Lloyd’s
Tiernan’s message was clear: Lloyd’s will seek an “apolitical” position, granting greater freedom to the insurers operating in its market to decide which risks to underwrite, always within the regulatory framework of each country. “We respect the law of each jurisdiction and the choice of energy mix,” he said.
At the same time, the CEO underscored the growing risks associated with climate change, alongside factors such as advances in AI, social instability and economic shocks. According to Lloyd’s, the rise in extreme events (such as wildfires and flooding) is already impacting the industry, forcing a rethink of coverage strategies in the face of increasingly complex, interconnected threats.
The financial backdrop
The financial context is also worth noting. Lloyd’s closed the first half with lower profits, although it increased premiums and improved investment returns. The balance between profitability, risk management and adaptation to new energy scenarios sits at the heart of the current debate.
It is a very interesting topic at both international and regional levels, particularly for those operating in strategic sectors such as energy, agriculture and technology. I will leave the link to the original article for those who wish to explore it further.
