LONDON, Oct 9 (Reuters) - The Lloyd's of London

market is undermining climate action and should

impose binding rules to prevent insurers supporting fossil fuel

expansion, NGO Reclaim Finance said on Wednesday.

Some European insurers, including Generali and

Zurich, have imposed restrictions on underwriting for

fossil fuel projects in response to pressure from investors and

campaigners.

But Reclaim Finance said Lloyd's of London was a laggard in

that it left decisions on whether to underwrite activities in

heavy-emitting sectors to its syndicate members.

Only five of Lloyd's 51 members, or managing agents, have

policies restricting cover for new oil and gas fields, Reclaim

Finance said.

"If the Lloyd's market wants to be taken seriously as a

leading player in the transition, its managing agents need

policies now," Ariel Le Bourdonnec, insurance campaigner at

Reclaim Finance, said.

A spokesperson for Lloyd's pointed to the group's transition

roadmap, a three-year plan for supporting Lloyd's customers as

they shift to lower carbon models and to help Lloyd's managing

agents develop their sustainability strategies.

"Lloyd's will continue to follow government policy and

regulatory requirements globally, while remaining committed to

support an urgent and orderly just transition and remain agile

in response to external shocks," the emailed statement said.

Lloyd's did not comment further on Reclaim Finance's report.

Lloyd's CEO John Neal told Reuters in an interview last

week, before the NGO report was published, that Lloyd's did not

plan to ask its members to tighten their oil and gas

underwriting policies but would monitor managing agents'

transition plans.

Neal said Lloyd's remains committed to its net zero goal and

considered supporting two parallel energy systems was essential

to a fair transition.

The Paris-based International Energy Agency has said there

is no room for more oil and gas exploration if the goals of the

Paris Agreement on cliamte change to keep global warming below 2

degrees Celsius (3.6 F) above pre-industrial levels are to be

met.