CDP disclosure

Start date

End date

Indicate if you are providing emissions data for past reporting

Select the number of past reporting years you will be providing emissions data

years

for

Reporting

November 1

October 31

Yes

1 year

year

2020

2021

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Does your organization undertake this activity?

Insurance types underwritten

Industry sectors your organization lends to, invests in, and/or insures

Banking (Bank)

No

Investing (Asset manager)

No

Investing (Asset owner)

Yes

Please select

Insurance underwriting (Insurance company)

Yes

Please select

Please select

Indicate whether you are able to provide a unique identifier for your organization

Provide your unique identifier

Yes, an ISIN code

BMG4593F1389

Yes, a Ticker symbol

HSX

Position of

Please explain

individual(s)

Other,

The Risk Committee of the Board oversees the risk management framework and advises the Board on how to best manage the Group's risk profile (which includes its exposure climate-related risks)

please

and overall risk appetite, tolerance and strategy. The Risk Committee of the Board also engages in focused reviews, including the potential impact to the business of climate change risks, outlining

specify (The

current disclosure requirements and exploring our response to the uptick in interest from regulators and other key stakeholders when it comes to climate. The Risk Committee is made up of the

Risk

following individuals: Risk Committee Chair and Deputy Chair, and Independent Non-Executive Directors. It is also attended by CEO, CFO, CUO, CRO, Head of Internal Audit and other senior

Committee of

executives as required. The role of these individuals is to provide advice, oversight and challenge to embed and maintain a supportive risk culture throughout the Group. Individuals do not have

the Board)

specific job roles as part of the Risk Committee; instead they have a collective group oversight and responsibility for ensuring the Group adheres to robust management practices. The Risk

Committee instead operates against a defined Terms of Reference and remit.

Other,

The Audit Committee of the Board monitor the scope, results and cost effectiveness of the internal and external audits, as well as a range of other things. When the business is exposed to natural

please

catastrophes, the Audit Committee of the Board receives an update on the financial processes that the company conducts when significant events, such as California wildfires or Japanese

specify (The

typhoons, arise. It is imperative that the company can quickly, and to a reasonable degree of accuracy, estimate the gross and net losses arising from such events and the Audit Committee of the

Audit

Board is responsible for overseeing internal controls and processes including reserving and claims for catastrophes. The Audit Committee is made up of the following individuals: Chair of the Audit

Committee of

Committee (who also serves as the Group Whistleblowing Champion), Independent Non-Executive Directors and is attended where relevant by Executive Management including the CEO, CFO,

the Board)

CUO, Chief Actuary, Head of Internal Audit, CRO and other senior executives as required. Similarly, individuals do not have specific job roles as part of the Audit Committee; instead they have a

collective group oversight and responsibility for audit matters and operate against a defined Terms of Reference and remit.

Other,

Our Group Chief Underwriting Officer sits on the Board and is responsible for overseeing how we underwrite catastrophe risk, as well as how we model and manage our exposure and stress test

please

certain catastrophes. Climate change has a real impact on our core business and climate-related catastrophes are included in our modelling. Hiscox has a strong culture of using climate risk

specify

modelling to aid the assessment of current and future risks. A large part of Hiscox's pricing, capital, reserving and reinsurance models are underpinned by our catastrophe research and modelling

(Group Chief

activities, as well as by our customer and claims data. Hiscox recognises the opportunity to develop products to help manage our customers' evolving climate-related risks.

Underwriting

Officer)

Other,

In 2019, we updated the roles and accountability of senior managers within our UK business units to include climate-related risks, in line with the PRA's recommendations in its Supervisory Statement

please

on how banks and insurers should manage their climate-related financial risks. Under the PRA Supervisory Statement 33/19, insurance company boards are required to 'understand and assess the

specify

financial risks from climate change that affect the firm, and to be able to address and oversee these risks within the firm's overall business strategy and risk appetite'. As a result, the CEO of our two

(Group CEO

UK insurance subsidiaries have been appointed Senior Management Functions (SMFs) with responsibility for climate change on our relevant UK boards. As such, they are responsible for ensuring

and Hiscox

physical, transition and liability risks arising from climate change, and their potential impacts, are considered over a range of business planning timeframes. The key responsibilities of the SMFs are

UK CEO)

to ensure the following high level outcomes: • Governance: The entity Board understands and is able to assess the financial risks from climate change to oversee these risks from within the firm's

overall business strategy and risk appetite. The Board has the right knowledge and tools to discharge this duty. • Risk Management: The entity Board is able to identify, manage and monitor

transitional and physical risks associated with climate change. Risks and opportunities are considered in relation to strategy, balance sheet, and operations. • Scenario Analysis: Periodic stress

testing is enhanced to include transitional and physical scenarios and considers both the long and short-term impacts to business planning, strategy and operations. • Disclosures: A consistent and

appropriate approach to disclosure of the financial risks from climate change is embedded. The SMFs have established a cycle of reporting to the Group Executive Committee, the Sustainability

Steering Committee, and UK entity Boards on climate-related issues . These issues are discussed at least twice-yearly at Group Board level, with an insight / training session on climate scheduled to

be provided to all board directors in 2022.

Other,

The Ltd Board ultimately oversees our long-term ESG vision, strategy, priorities and performance against agreed metrics and targets. The Board ensures we have appropriate ESG governance and

please

accountability in place, with sufficient support, and discusses ESG strategy, trends, opportunities, vulnerabilities and emerging issues at least twice-yearly.

specify (Ltd

Board)

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Frequency

Governance

Scope of

Please explain

with

mechanisms

board-level

which

into which

oversight

climate-

climate-

related

related issues

issues are

are integrated

a

scheduled

agenda

item

Scheduled

Reviewing and

Climate-

The Hiscox Board has overall responsibility for every aspect of business performance. Our continuing success depends on how well we understand and manage the

- some

guiding

related risks

significant business risks we face, including those resulting from climate change. The Board is at the heart of risk governance and is responsible for setting the Group's

meetings

strategy

and

risk strategy and appetite, and for overseeing risk management. Climate-related risks, among other major exposures, are monitored and measured both within our

Reviewing and

opportunities

business units and at Group level, so we understand how much overall risk we take and what is being done to manage it. We look at how different risks interact and

guiding major

to our

whether these may result in correlations or concentrations of exposure that we need to know about, monitor and manage. The Board meets at least four times each year,

plans of action

insurance

and to facilitate management of the business, the Board appoints and authorises a number of committees to manage aspect of the Group's affairs including risk,

Reviewing and

underwriting

remuneration, investments and audit, with each committee chaired by a Board member. Since 2019, the Group Board has received twice-yearly updates and discussions

guiding risk

activities

on climate-related issues. During 2021, these sessions have included an overview of our current approach to ESG issues including climate change; approval of new

management

greenhouse gas targets for the Group, updates on ESG reporting including our participation in indices such as CDP, ClimateWise and DJSI and oversight of our 2022

policies

ESG plans. Of specific relevance to climate change is the Risk Committee of the Board. The Risk Committee advises on how best to manage the Group's risk profile by

Reviewing and

reviewing the effectiveness of risk management activities and monitoring the Group's actual risk exposure, to inform Board decisions. The Risk Committee relies on

guiding annual

updates from within the business and from independent risk experts. This group oversees the risk management framework, development and operational implementation

budgets

of risk management policies and procedures and advises the Board on how best to manage the Group's risk profile. Additionally, UK entity Board discussions regarding

Reviewing and

climate change have taken place bi-annually and progression towards strategic climate action plan commitments monitored quarterly. This allows us to consider the risks

guiding

that climate change presents to all aspects of Hiscox's risk profile and balance sheet. The Natural Catastrophe Exposure Management Group meet quarterly to review

business plans

our exposure to climate related risks. Results are also communicated across the business and reported to the Risk Committee of the Board and to the Board itself

Setting

whenever necessary.

performance

objectives

Monitoring

implementation

and

performance of

objectives

Monitoring and

overseeing

progress

against goals

and targets for

addressing

climate-related

issues

Board

Criteria used to assess competence of board member(s) on climate-related issues

Primary reason

Explain why your organization does not have

member(s)

for no board-level

at least one board member with competence on

have

competence on

climate-related issues and any plans to

competence on

climate-related

address board-level competence in the future

climate-related

issues

issues

Row

Yes

We provided climate-focused board training for our UK entity board directors during 2021. This training focused on

1

expectations of corporates post-COP26 as well as horizon scanning on key climate issues. The training was

recorded and made available to other board members, and we will build on this approach further during 2022 with

additional climate-focused board training which further enhances existing competencies in this area.

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Name of the position(s) and/or

Reporting line

Responsibility

Coverage of responsibility

Frequency of reporting to the

committee(s)

board on climate-related

issues

Chief Risks Officer (CRO)

CEO reporting line

Assessing climate-related risks and opportunities

Risks and opportunities related to

Half-yearly

our insurance underwriting

activities

Risks and opportunities related to

our own operations

Risk committee

Reports to the board directly

Both assessing and managing climate-related risks and

Risks and opportunities related to

Annually

opportunities

our insurance underwriting

activities

Risks and opportunities related to

our own operations

Other, please specify (Director of

Other, please specify (Underwriting -

Assessing climate-related risks and opportunities

Risks and opportunities related to

As important matters arise

Underwriting Risk and

reporting line to Chief Underwriting Officer)

our insurance underwriting

Reinsurance )

activities

Risks and opportunities related to

our own operations

Other, please specify (Exposure

Other, please specify (Reports through the

Assessing climate-related risks and opportunities

Risks and opportunities related to

Quarterly

Management Groups)

Risk Committee of the Board)

our insurance underwriting

activities

Risks and opportunities related to

our own operations

Other, please specify (ESG

Finance - CFO reporting line

Other, please specify (To help ensure Board and Executive

Risks and opportunities related to

Half-yearly

Executive Sponsor )

Committee oversight of ESG issues, including climate-related

our investing activities

issues.)

Risks and opportunities related to

our insurance underwriting

activities

Risks and opportunities related to

our own operations

Sustainability committee

Other, please specify (Reports up to the

Both assessing and managing climate-related risks and

Risks and opportunities related to

Quarterly

board through the risk committee of the

opportunities

our investing activities

board)

Risks and opportunities related to

our insurance underwriting

activities

Risks and opportunities related to

our own operations

Provide incentives for the management of climate-related issues

Comment

Row 1

No, and we do not plan to introduce them in the next two years

Employment-

Describe how funds within the retirement scheme are selected and how your organization ensures that ESG criteria are incorporated

Provide reasons for not

based

incorporating ESG

retirement

criteria into your

scheme that

organization's

incorporates

employment-based

ESG criteria,

retirement scheme and

including

your plans for the future

climate change

Row

Yes, as an

Hiscox has a Group personal pension plan, through which individual members are responsible for investment decisions. Members of the Group personal

1

investment option

pension plan have access to a number of ethical UK equity and fixed income funds to choose from among other investment options. These include a

sustainable global equity fund; a global climate and environment fund; a positive change fund; and a reduced carbon bond fund. Information about these

investment options is readily available to staff, for example if employees wish to consider changing their pension investment arrangements, tools are available

online to help guide their choices and reference to the availability of an ethical fund is also made during staff pension presentations which typically take place

annually. We are pleased to see that these funds are being used by employees.

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From

To

Comment

(years)

(years)

Short-

0

2

Given the nature of our exposure as a property and casualty (P&C) insurer, with majority of our business being annual insurance policies, a 0-2 year view is in keeping with the products

term

we write. Hiscox continually identifies catastrophic and systemic risks from damage caused by a range of catastrophes, including natural events such as hurricanes and earthquakes, as

significant enough to be rated as principal risks to the business. In addition, Hiscox's current list of most significant future disaster scenarios are predominately based on natural

catastrophes and all are climate-related except for major earthquakes. The list includes US flood risk; Florida windstorm; European windstorm. Hiscox publishes its exposure to these

extreme loss scenarios twice yearly during its full year and half year financial results statements to the market.

Medium-

2

5

Business planning across the group is also considered in 3 year time-frame and looks at emerging risks over this horizon.

term

Long-

5

10

The Group considers longer term strategic risks from 5+ years given the changing nature of climate risk and our business.

term

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