ESG and the opportunities it creates for (Re)insurers

Adriana Cotter (Partner Insurance, Eversheds Sutherland (International) LLP, London) |

ESG has, for some time now, moved higher up the boardroom agenda as (re)insurers grapple with the complexities of this area on their business in the context of their underwriting strategy; how and where they deploy their investments; and also in respect of the make-up of their workforce. There is typically a spotlight on the environmental piece, yet social and governance initiatives are also gaining greater attention now.

In a landscape where rules around reporting and disclosure of ESG risks are increasing and pressures from stakeholders and activists are on the rise, there are key areas where (re)insurers can use their unique influence to progress the shift to a low-carbon economy: underwriting and innovation.

Underwriting

The spectrum of responses to ESG underwriting has been broad, with some (re)insurers imposing restrictions on thermal coal and oil and gas projects, while others