ESG and Insurance

Does your organisation’s persona reflect your ESG beliefs and commitment?

Founded on the ability to understand risks and find solutions to manage them, the insurance sector has rarely been unsettled by emerging risks and trends in the industries they underwrite. Environmental, Social and Governance (ESG) will likely be no different for insurers, presenting both challenges and opportunities.

However, they are no longer answerable just to shareholders but customers, employees, suppliers, communities, the press and regulators. These broader and more vocal groups are increasingly interested in how ESG drives corporate performance.

Given their role in underwriting the activities of other corporates, and in addition to considering their own firms’ responses to ESG, insurers should be well-placed to influence how others respond. And they have a unique responsibility to influence behaviours and help accelerate ESG outcomes. By doing so, they can reaffirm their role as an essential link in society.

But as ESG issues gain momentum, there continues to be a deluge of thought leadership around the subject. Despite this, it remains an area that insurers are grappling with, as guidance fluctuates between high-level ESG thinking and technical literature. This report offers a framework for insurers to consider and introduce practical initiatives that address ESG and identify growth opportunities.