Welcome to The ESG Insurer, your new monthly digest of important developments in the insurance industry’s transition towards a more sustainable future.
This first edition comes at a pivotal time for the sector as it moves to enhance environmental, social and governance (ESG) standards from an underwriting, investment and operational perspective.
As regulators, investors, clients and other stakeholders all increase focus on how carriers and brokers perform against a range of ESG metrics, companies are taking steps to rethink business operating models as well as their underwriting and investment portfolios.
The term ESG covers a broad range of standards encompassing the sustainability and societal impact of a company’s actions. These include actions taken by an entity to address climate change – both in terms of underwriting and investment decisions – as well as its social impact through its attitudes towards diversity and inclusion within its workforce.
Corporate governance issues also form a key component of a company’s ESG performance, and this scrutiny will increase over time as regulators develop new rulebooks to ensure companies are taking these issues seriously.
This represents a major challenge for the (re)insurance sector, and one that is complicated by a current lack of industry-wide ESG standards.
The ESG Insurer will enable carriers and brokers to keep on top of the myriad developments taking place each month in the ESG space in a concise, digestible format. As new standards emerge, we will detail what they mean for your business and provide a barometer of how your peer group is responding.
Each month we will hear from key industry stakeholders on how they are addressing the ESG challenge. In this first edition, Swiss Re CEO Christian Mumenthaler details his company’s approach to sustainability and measures being taken to address climate challenges.
We also hear from Conduit Re co-founder and executive chairman Neil Eckert, who speaks to The Insurer TV on how his firm intends to be zero carbon through offsetting 100 percent of its carbon footprint, as well as its broader ESG initiatives.
“What I actually want to see is behaviour that leads to business opportunity – the motto would be do good by doing good” - Neil Eckert, Conduit Re
Commenting on the current focus on ESG across the sector, Eckert – who founded Climate Exchange in 2005 and later sold the business for £400mn – said: “I just hope it’s not all noise and reporting requirements and bureaucracy.
“What I actually want to see is behaviour that leads to business opportunity – the motto would be do good by doing good.”
The ESG Insurer will aim to help (re)insurers deliver on this motto by cutting through the noise and bureaucracy to report on the behaviour that really matters.
Please share your copy of The ESG Insurer with clients and colleagues and get in touch about your own initiatives.
It will take a collective effort across the industry if the work being undertaken today is to lead to a more sustainable and inclusive (re)insurance sector.