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Market trends
Pamela Styles
|
March 15, 2019
3 min read
Insurance companies are in an exciting position regarding ESG/Sustainability. Unfortunately, like with other sectors, it appears that especially midsize-to-smaller U.S. carriers are late to the party in competitive ESG/Sustainability positioning. But that might be changing.
As we frequently read these days, ESG is here to stay and is solidly in the mainstream.
Related: ESG Investments Reach All-Time High
Many reading this blog are familiar with the Dow Jones Sustainability Index (DJSI), U.N. Principals for Responsible Investing (UNPRI), and what was previously called the Carbon Disclosure project but now goes by CDP. However, few may be likely aware of the Principles for Sustainable Insurance (PSI) initiative. Pertinent information from these organizations and a few AlphaSense and internet searches include:
Aflac [$AFL], AllState [$ALL], American Financial Group Inc. [$AFG], Everest RE [$RE], MetLife [$MET], Travelers [$TRV], The Hartford [$HIG] and Torchmark Corporation [$TMR].
According to MIT, “The insurance industry has taken note [of ESG/Sustainability] and begun to make strides in identifying and addressing these challenges.”
A quick scan of a list of oU.S.S. insurance trade associations suggests more than a few are including ESG/Sustainability in their body of knowledge material, e.g., American Risk and Insurance Association (ARIA), American Society of Appraisers (ASA), National Association of Insurance Commissioners (NAIC).
From an insurer’s risk standpoint, consider exposure to subscribing companies that might occur in environmental, social, and governance claims situations. Finally, from an insurer’s company return standpoint, consider missing competitive positioning opportunities to grow business by ignoring increasing B2B and consumer stakeholders’ attention to ESG-related communications and inquiry responsiveness.
It appears to be time for moU.S..S. insurance companies’ leadership to catch up and harness ESG/Sustainability for your company’s competitive advantage.
Pamela Styles is principal of Next Level Investor Relations LLC, a strategic consultancy with dual Investor Relations and ESG/Sustainability specialties.
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