Large institutions are turning their attention to ESG and how these risks are relevant to the insurance industry. In 2012 the United Nations launched the Principles for Sustainable Insurance. It provides helpful guidance on how to incorporate practices into the insurance sector which will help to build a resilient and sustainable society. This was followed up in June 2020 by the release of the first global insurance industry guide, aimed primarily at property and casualty underwriters, to help them tackle a wide range of sustainability risks.
Insurers are significantly affected by the consequences of ESG risks through the claims payments they will make. A reduced moral hazard, higher standards of ethical behaviour and a strong system of controls inevitably leads to better loss performance and thus a more attractive underwrite.
To date, the majority of insurers do not factor in their customers ESG profile when determining risk pricing. This is largely because in most circumstances they are not provided with this information in a comprehensive and consistent manner by the broker. We work together with our clients to use proven metrics that allow us to convey the benefits of their proactive approach to dealing with ESG challenges in a quantifiable manner.
We use insurance products and capacity to protect pro-ESG organisations and help to facilitate their growth.
Sustain Insurance Brokers is a trading name of Sustain Brokers Limited which is registered in England and Wales under company registration number 14309360. Sustain Brokers Limited is also an appointed representative of TEn Insurance Services Ltd, trading as Eleven, which is authorised and regulated by the Finance Conduct Authority (FRN 314593).
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