Re/insurers are taking steps to move the ESG needle: Marisa Savage, PwC Bermuda


As environmental, social and governance (ESG) adoption continues to accelerate in the reinsurance and insurance-linked securities (ILS) world, the focus right now is on the environmental side of things amid the urgent need to transition to a low carbon economy, according to Marisa Savage, Partner in the PwC Bermuda Insurance practice, and leader of the PwC Actuarial Services practice for the Caribbean.

Savage, who is also the ESG Leader for PwC Bermuda, spoke with our sister publication as part of its Artemis Live series of video interviews, about the importance of ESG and the current state of play on adoption in the Bermuda reinsurance and ILS space.

“I think for me, it’s really the focus on the E right now, the environmental side of things, given the climate emergency that the world is facing, and the dire need to transition to a low carbon economy,” said Savage. “So, I think that’s where I really see the focus being, and I hope the world does, too. But that being said, in doing that, and in focusing on just carbon transition and things like that, there is a big impact on the social side of things.”

In terms of PwC’s work on ESG, Savage explained that the firm’s value proposition is that it is a trusted and solutions based entity. On the trust side, she continued, that means delivering assurances on ESG reporting matters.

“As standards come out they’re going to be requiring assurance, and we are well placed to provide that assurance for our clients on the solution side of things, working with clients on ESG strategy on evaluating governance frameworks and things like that,” said Savage.

On ESG adoption, Savage highlighted what companies are doing to move the needle.

“I think most big players, when you talk about the underwriting side of things, they’re making commitments, say, by 2030, to stop underwriting coal fire projects or other carbon intensive exposures. And they’re also looking at the investment side of their balance sheet to look at the mandates they have for their advisors to make sure that what they’re investing in is ESG friendly,” said Savage.

“That all being said, the regulators have very much clued into the need for comparability in reporting demanded by stakeholders,” she continued.

In Bermuda specifically, Savage noted that there’s a lot of regulation coming down the pipe, which is having an impact on re/insurers on the island.

“So, the one closest to home is the BMA’s guidance, which is called the management of climate risk guidance notes, that came out in August of 2022, and that is actually effective now. So, companies are working on their year-end CSIS and VSCRs and all of that kind of thing, and they’re having to include that guidance in their responses. However, they have until 2025 to be fully compliant, so it will be evolving compliance matters as things change and move forward,” said Savage.

All Posts

Almost done…

We just sent you an email. Please click the link in the email to confirm your subscription!