In this section we hear from senior industry executives, ESG specialists and other key stakeholders about issues central to the mission to create a more sustainable future.
Unstandardised numerical scoring on ESG performance would be better replaced with a qualitative understanding of insurers’ risk management approach to ESG, according to KBRA’s Peter Giacone.
The offshore wind insurance market faces a period of uncertainty as carriers wait to see whether recent underwriting actions deliver profitability and wider market stabilisation, particularly as projects in the US begin to ramp up, according to McGill and Partners’ Tim Halperin-Smith.
Data wrangling is a critical step when structuring insurance products for climate-related risks, according to Osho Jha, co-founder and chief data scientist at parametric insurtech Arbol.
Insurers can better harness their role as an enabler of the low-carbon transition if they lean into research that enables data collection, according to Convex’s head of sustainability Rachel Delhaise.
Helping stakeholders in emerging economies to understand their risk profile and explore solutions beyond traditional financial risk transfer will be key to building financial resilience and mutual collaboration, according to RenaissanceRe’s Jeff Manson.
The (re)insurance industry’s role in supporting decarbonisation efforts extends beyond underwriting exclusions for fossil fuel-related activities and should incorporate a holistic view of individual companies’ long-term transition planning, according to Andrew Smith, chief risk and sustainability officer at Conduit Re.
Developing countries are becoming more comfortable with insurance as growing risk awareness and understanding of the role of the financial sector have led to the promotion of financial inclusion and resilience among climate-vulnerable populations, according to Gallagher Re’s Antoine Bavandi.
There has been a “paradigm shift” in how insurance companies deal with risk as carriers move beyond traditional risk transfer to adopt an increasingly advisory role for cedants, particularly in complex areas such as climate risk that impact the entirety of a business, according to Hanno Mijer.
Probitas is entering its “most exciting phase” as the Lloyd’s insurer prepares to build out its new energy transition team under the leadership of former Munich Re underwriter James Grainger, according to CEO Ash Bathia.
The widening protection gap and reduced climate exposure of some carriers will see more insureds turn to self-insurance mechanisms unless the industry innovates to retain its relevance in addressing big risks, according to EY’s Isabelle Santenac.
While there is client demand for insurers to integrate sustainability and resilience into building repair solutions, underwriters remain wary of new practices and materials owing to a lack of loss history and data, according to Sedgwick’s Peter Wassell.
The insurance industry has a central role to play in aiding human development and resilience through risk transfer solutions, index-based products and inclusive insurance programs, according to the UN Development Programme’s Jan Kellett.
Victoria Ohorodnyk, associate director of analytics at AM Best, talks to ESG Insurer about the impact of increasing regulation and standardisation efforts on ESG data and ratings, as well as the varying approaches deployed by companies to measure progress against their ESG strategies.
ESG-related underwriting strategies should adopt a more regionalised approach to account for the energy mix, technological advancements and insurance market penetration of a country, according to Africa Specialty Risks’ Suzan Pardesi.
The resources of the Financial Conduct Authority aimed at curbing greenwashing within the UK financial services sector should not be underestimated, with regulatory action in this space expected to increase in 2023, according to RPC’s James Wickes.
The future of the Net-Zero Insurance Alliance (NZIA) is hanging in the balance having lost more than half its members following the intervention from a “deeply irresponsible” group of US Republicans citing antitrust concerns.
Clients are increasingly looking to “play offense” and differentiate themselves to carriers, particularly relating to property cat as buyers compete for limited capacity, Aon’s Lambros Lambrou has told The Insurer TV ahead of the RIMS RISKWORLD 2023 meeting.
The solution to attracting more capital and liquidity to underwrite emerging risks such as cyber is to ensure “several sources” of information are made available to enable informed decision-making, according to AkinovA’s CEO and co-founder Henri Winand.
Climate campaign group Reclaim Finance has called on Lloyd’s to “stop greenwashing” and to mandate stricter policies around the exclusion of fossil fuels to achieve meaningful change in a new report which ranks the fossil fuel underwriting policies of managing agents.
The groundbreaking community-based parametric scheme set up to provide emergency funding to New York neighbourhoods impacted by flooding has potential to scale up to cover thousands of cities across the US, according to Guy Carpenter’s Julian Enoizi.
Cat bond issuance levels are expected to reach record levels in 2023 with Aon Securities CEO Paul Schultz predicting north of $11bn as a “reasonable outcome” following a muted end to 2022 as a result of investor uncertainty and frustrations.
QBE International CEO Jason Harris has forecast the reinsurance market dynamics experienced at 1.1 will continue as 2023 progresses, with the potential need for additional pricing increases to counter inflationary impacts.
Climate events and social justice have dominated headlines in recent years, with the understanding and prioritisation of these issues only increasing.
Karen Clark has said that while scientific consensus has determined climate change is not impacting hurricane frequency, it is driving severity higher and that the industry should be prepared to absorb more loss events ranging between $20bn and $40bn.
This year has been one of significant momentum for the (re)insurance markets in relation to ESG, with the industry markedly increasing its focus on assessing risk through an ESG lens.