Why is ESG is no longer an aspiration—it is now critical for insurers


Why is ESG is no longer an aspiration—it is now critical for insurers

Michael Bruch, AGCS, Rachael Dugan, SiriusPoint, Christine Korwin-Szymanowska, PwC & Jessica Botelho-Young, AM Best

If insurers are failing on ESG, as a recent report suggests, it’s partly because the challenges they face are more complex than for most. That was at the heart of a panel discussion organised by Intelligent Insurer.

Two recent reports highlight the difficulties the industry must contend with when it comes to environmental, social and corporate governance (ESG) issues. In late May, London-based campaign group ShareAction released its report accusing insurers of “driving climate change, biodiversity loss and human rights violations”. The group said insurers were lagging behind the finance sector’s push to embrace ESG issues.

In the same month, a survey by Aberdeen Standard Investments found 87 percent of UK insurers believed that risk management was the primary driver of their ESG practices. Only 27 percent saw ESG as a business or investment opportunity. For many, it seems, ESG has little upside.

To discuss the challenges facing the industry, a recent session of Intelligent Insurer’s Re/insurance Lounge, the online, on-demand platform for interviews and panel discussions, brought together a diverse panel of experts:

AM Best, Allianz Global Corporate & Specialty, Third Point Re, Sirius Group, PwC, Insurance, Reinsurance, ESG, Report, UK

Intelligent Insurer