MIAMI — Captive insurers can support an organization’s environmental, social and governance programs, regardless of the political environment in different states, experts say.
They spoke Thursday during a panel session at the World Captive Forum, sponsored by Business insurancein response to a question from the audience about how prisoners can be used given the different political and legislative environment in blue and red states and its impact on ESG policies.
Several states, including Florida and Texas, have taken anti-ESG stances and passed laws penalizing financial institutions because of their ESG investment policies.
Despite legislation introduced in some states, many captives want to compete in the ESG space, said Brian Quinn, founder of Bermuda-based Granite Management Ltd., a captive management and consulting firm.
“To push out what they want to do is their global promise, regardless of state,”; Mr. Quinn.
The emphasis when it comes to benefits is on benefits, says Alan Buckley, partner at Mercer LLC.
“When you break down what you’re trying to achieve, there are some common sense goals: access to medical care globally and having equity around potential outcomes in terms of cancer treatment, neonatal care. I hope it never gets politicized,” he says.
The global environment is complicated from a regulatory perspective, so part of the attraction for captives in developing an ESG strategy is that they are set up to be professionally run and very well regulated, Mr. Buckley.
“They have that visibility and a strong emphasis on governance, so you can manage compliance risk and reputational risk around the world, which is really critical,” he said.