Briefing: Lloyd’s in climate crosshairs as campaigners call for fossil fuel exit

As the United Nation’s annual climate conference, Conference of the Parties (COP), prepares to begin in Brazil next week (10 to 21 November 2025), the world’s oldest insurance market is copping it from climate campaigners.

For years now, non-governmental research and campaigning organisation Reclaim Finance has called on Lloyd’s of London to halt its insurance of fossil fuel projects, claiming that this activity goes against global efforts to reduce carbon emissions and mitigate the detrimental effects of climate change.

Today (5 November 2025), the organisation has released its own research around this subject matter.

Reclaim Finance stated that Lloyd’s estimated fossil fuel premiums have increased by 2.4% annually between 2020 and 2024, while other insurers have – on average – seen a decline in this class.

The organisation added that Lloyd’s of London remains the single largest global centre for fossil fuel insurance and “appears to be abandoning any pretence of climate action” – even though many other insurers are seemingly moving away from new coal, oil and gas covers.

Reclaim Finance is therefore urging Lloyd’s and its managing agents to introduce policies that restrict underwriting for new fossil fuel projects.

Its analysis – based on estimates from market intelligence provider Insuramore, covering the period between 2020 and 2024 – reported that Lloyd’s of London increased its fossil fuel business across the report time frame.

So, despite rapid growth in its sustainable energy business, Lloyd’s of London’s fossil fuel arm remained more than four times larger than its sustainable energy segment in 2024. This gives Lloyd’s 9% of the global fossil fuel insurance market.

Commenting on the report findings, Luke Whiting, UK insurance campaigner at Reclaim Finance, said: “Lloyd’s of London wants to both have its cake and eat it.

“It is growing a sustainable energy business in the name of the [climate] transition, but [it is] growing its fossil fuel business at the same time.

“There is no room for new coal or new oil and gas in the transition to sustainable energy. By continuing to support fossil fuel expansion, Lloyd’s is undermining other insurers’ efforts to prevent climate risk and [is therefore] condemning us all to a future of climate chaos.”

The group added that Lloyd’s of London already stands out among European insurers for its lack of climate policies, with the market’s chief executive, Patrick Tiernan, telling the Financial Times in September 2025 that he will “no longer ask insurers to stop providing insurance cover for coal or other planet warming fossil fuels”.

Not as simple as out with the old, in with the new

Reclaim Finance’s new report and comments demonstrate that the issue of fossil fuel cover is not going to go away any time soon.

The insurance sector has a fine line to tread. While the use of fossil fuels is a major factor in the climate change debate, there is every likelihood that they will be required to deliver energy for decades to come while the renewable sector gathers critical mass.

Many reinsurers and insurers explain that they are working with major energy producers to support the move to a net zero emissions future – and that means they need to support their current fossil fuel projects as they transition to sustainable operations.

As witnessed in recent years, environmental groups have been keen to target the insurance sector with a range of demonstrations and disruption – both inside and outside of their offices.

Insuring the transition from fossil fuels to renewable energy while this marketplace is still in its infancy presents a challenge for which there is no easy answer.

However, the reputational damage from seemingly supporting fossil fuel usage may have more far-reaching effects than first predicted – for example, a career in insurance may feel like a toxic choice for young people with a climate conscience.

This situation presents a balancing act where a misstep could prove fatal for the UK general insurance industry.