The past year has changed our lens on many aspects of work and life, including sustainability. For insurers, sustainability beyond altruism developed into a new business imperative.
There are both external market forces and internal cultural forces that raise sustainability items on the insurer's agenda. Insurance companies respond to market pulls related to changes in risk. And at the same time, they respond to internal pressures from their own leadership and workers who want to address environmental and societal challenges.
The market pulls insurers towards sustainability
An example can be seen in the fundamental changes that are now taking place in the energy sector. We see many more companies focusing on renewable energy. In response, insurance companies create products and services to support these players. At the same time, insurers are making important portfolio changes that would minimize their exposures to fossil fuels.
We see a similar market pulling in consumer demand. In our insurance consumer study 2021
This gives personal insurance companies an opportunity to show that sustainability is a common value. Since insurance companies reorganize insurance after COVID, they can (re) build trust with organizational purposes and a commitment to environmental, social and governance goals (ESG).
The internal pressure on sustainability
Insurance companies now want to build sustainability value in their business models, product portfolios and the communities in which they live and work. These initiatives are driven by a shift in thinking. Although internal key figures, such as reducing carbon footprints, will continue to be important, ESG-driven initiatives can go much further.
Insurers can set sustainability goals that help generate revenue while reducing costs and building deeper relationships with their customers and communities. Intelligent insurance business can help adapt insurance to ESG criteria. Products that offer protection for underinsured groups can be scaled. And products aimed at promoting the well-being and longevity of aging populations can help delay the need for disability and long-term care claims. growth. The nature of the insurance requires companies to understand complex risks and work with a long-term mindset to monitor and manage risks. However, there is always room to improve ourselves and the world around us.
Here in the northern hemisphere, spring has arrived. We think of this as a time of renewal and growth. May it be true for all of us as we seek new solutions to our greatest global challenges.