Sustainability is a key issue in the insurance sector both for its image and its future profitability. Insurance is one of the leading industries in the global economy, and therefore needs to be seen as a leader in the key issues within sustainability, such as climate change. Perhaps more importantly for the industry, the impact of climate change is already being seen, and is having a severe impact on profits. Severe weather events such as the Australian wildfires have cost insurers and reinsurers millions, and as the issue gets worse events like these will become more common. The situation makes claims significantly higher and consequently premiums harder to price.
Aon has identified the need for innovation and development of policies via its partnership with Oxfam to provide blockchain-based insurance to Sri Lankan farmers.
AXA, Chubb, QBE, and Aviva are among the leading insurers to explicitly state they will stop working with unsustainable businesses such as the coal industry by a certain date.
Reasons to Buy
Benchmark yourself against the rest of the market.
Ensure you remain competitive as issues related to sustainability remain a key issue.
Be prepared for how environmental regulation will impact the insurance industry over the next few years.
Aviva, Admiral, AXA, RSA, Direct Line, Legal & General, Hiscox, Aon, Oxfam, Chubb, QBE
Table of Contents
GlobalData’s sustainability framework
The impact of sustainability on insurance
Diversity and inclusion
Sustainability measurement and response
ESG ratings agencies
Appendix: Our thematic research methodology