GREEN INSURANCE
At its core , insurance is about mutualising and managing risks – principles that are inextricably linked to environmental , social and governance ( ESG ) criteria .
The insurance industry is in a unique position when it comes to the climate crisis . Climate change , in particular , is forcing insurers to reassess their risk models and develop innovative products that address emerging environmental threats while creating new business opportunities .
According to a report by PwC entitled ‘‘ ESG : A growing sense of urgency ’, 85 % of global insurers expect ESG factors to impact all functions of their business , with investments ( 91 %), risk ( 90 %), and underwriting ( 88 %) being the most affected areas .
Furthermore , 51 % of global insurance CEOs have made or are working towards a net-zero commitment to address climate risks and meet customer expectation .
Rachel Delhaise , Group Head of Sustainability at Convex Group , says : “ The financial world needs to be much more ambitious in terms of how we address decarbonisation and the transition to a sustainable economy .
“ The insurance sector is a crucial and impactful actor in this . Insurers engage with the real economy both in terms of insurance and investments and hold a significant amount of the world ’ s investments assets as their capital .”
114 November 2024