Defining Sustainable Insurance:
From Thought Leadership to Business Integration.
Insurers representing one quarter of global premiums written and USD 14 trillion in assets under management have now endorsed the Principles for Sustainable Insurance - part of an increasingly crowded arena of initiatives that aim to clarify the ESG value proposition for insurance underwriting and investment. Forward-thinking companies are drawing on emerging industry research and best practices to develop proprietary ESG strategies that reflect their business and market-specific opportunities to reduce risk, improve loss ratios, and grow their top line.
From Emerging to Systemic Risk:
Understanding Climate Change.
Reinsurers have published emerging risk research on climate change since the 1970s. By last year, the industry warned of systemic risks in the face of losses from non-modelled secondary perils that now exceed primary perils, changing demographics that drive population density and value concentration in high risk areas, and increasingly correlated underwriting and investment risks associated with physical climate impacts and the transition to a low-carbon economy. Companies that develop the capacity to properly assess the interconnected risks - and opportunities - associated with climate change now, will thrive in a climate resilient, low carbon future.
Life + Work @ Home:
Shifting the ESG Equation.
The Covid-19 pandemic has fundamentally - and likely forever - changed the workforce. The insurance sector must navigate talent retention and performance management across a remote workforce while doubling down on digital transformation. All of this impacts the ESG agenda, forcing companies to develop programs that can effectively engage home-based employees to meet environmental targets, protect work/life balance and broader health and wellness initiatives, cultivate a positive corporate culture, ensure good governance, and more.
Equality, Diversity & Inclusion:
How Insurers Can Meet the Moment.
We live in a time of social and cultural upheaval. Now more than ever, companies must look inward to create a culture that aligns with their values and meets the expectations of their employees, customers and shareholders. Those that embrace equality, diversity and inclusion are moving to win the battle for talent and retention, productivity and fresh thinking, customer centricity and brand management, and compliance and risk mitigation. It’s an issue who’s time has come, and a powerful manifestation of what’s good for people, is good for business.
