Accountability

Climate change

Climate change affects an estimated 35% to 40% of global insured risks and is thus a significant external risk to the business. As an underwriter of property and catastrophe risk, Amlin has a keen interest in understanding the effects of climate change and ensuring that changes to our risk profile arising from climate change are factored into our risk management, structuring and pricing of products. Amlin subscribes to a number of risk modelling agencies which are evaluating the impact of climate risk. Whilst uncertainty over climatic conditions creates insurance opportunities, as a catastrophe insurer we have a vested interest in ensuring that such risks do not become uninsurable. Allied to our thorough analysis of such risks, it is therefore in our interest that international action to contain climate change, in which we believe business should play a full part, is successful. In the meantime, we are able to help insureds in vulnerable parts of the world to cope with its consequences by continuing to offer cover, at a commercial price, that some insurers avoid.

In October 2007, Amlin therefore became a signatory to the Climatewise principles, an initiative produced through consultation between the Association of British Insurers, The Prince of Wales’s Business & the Environment Programme, Lloyd’s and other insurance market participants. This represents an industry-wide commitment to monitor and take appropriate action on climate change. In order to explore fully the risks and opportunities presented by climate change, and to fulfil our the commitment made, we have formed a new Climate Change Panel composed of senior underwriters from across our business and chaired by the Chief Risk Officer. More details of the other governance changes affecting corporate responsibility are included in the Board Corporate Governance statement.

Managing Amlin’s direct impact

Amlin aims to manage the environmental impact of its activities, including by focussing on such areas as internal processes, responsible consumption, re-cycling, energy use and the encouragement of our suppliers and clients to act responsibly regarding environmental impact and risks. We continue to monitor initiatives for energy efficiency and resource management which we have put in place in recent years in our various sites and keep abreast of new initiatives in this area.

As tenants in several of our offices, we do not have primary control over all energy purchasing and waste management decisions. However, we fully support the initiatives taken by Aviva, our St. Helen’s landlords. Amlin has won a Gold Award every year since 1998 under the City of London Clean City Award in recognition of our waste management practices.

During 2007, we initiated a regular feature in Amlin Update, our staff newsletter, which is designed to raise employee awareness of the facts and implications of climate change. We also suggest ways in which they might reduce energy consumption and increase recycling, both as individuals and as employees of a responsible company.

© Copyright Amlin 2007