Sustainability in Insurance
In a mini roundtable with Risk & Compliance magazine, Graham Handy and Darko Popovic from FTI Consulting’s Global Insurance Services team discuss the growing importance of sustainability for the insurance sector, as well as the key risks and opportunities.
"To what extent are sustainability issues now firmly on the insurance industry’s radar? Why has it climbed the boardroom agenda in recent years?
Handy: Sustainability is now being regularly discussed by boards as a key part of the corporate strategic agenda – in particular, around the suitability of the investment portfolio, and for which client types, if any, the insurer might wish to reduce its exposure. One key accelerant in the last 18 to 24 months has been the inbound interest that customers, or partners, have shown in the industry’s environmental, social and governance (ESG) footprint. Pension trustees – when looking to transfer liabilities to insurers – are now asking substantive questions as part of their selection process. And retail customers, perhaps for the first time, are contacting their insurer to ask about the uses to which their money is being put."