A comprehensive global report on sustainability and the implications on the insurance industry has been published today. The report looks at sustainability-related initiatives and frameworks around the world and analyses the current status in 19 countries.
With its global reach and coverage the report is the first of its kind setting out the legal basis for sustainable insurance.
The insurance industry is affected by environmental, social and governmental risks in its entirety. From asset prices and investment choice to business transition risk; the ESG risk to insurers’ own operations including property, personnel supply chains and claims – the insurance industry will need to deal with many issues.
However, it is also uniquely placed to play a fundamental role in as part of the solution. Insurance engages with almost every industry and sector; it owns a large amount of the world’s assets and it has a global reach and a finely detailed knowledge of risk transfer and solutions.
The report was launched at an online event attended by industry members from a variety of functions at insurance companies, brokers and consultancy firms with speakers from UNEP FI, AIG, Insurance Council of New Zealand and FTI Consulting.
During the session a survey was conducted which found that in spite of the COVID-19 pandemic 69% of attendees had experienced an increase of the importance of ESG issues due to public attention and policymaker statements.
This has been reinforced by increasing focus on ESG topics from employees and customers and 38% of attendees noticed a marked increase in their competitors’ activities in this area.
Within insurance companies the areas most affected by ESG issues were Investment and Risk Management departments.