Insurers fear ESG slippage, now taking above-average heat from stakeholders

Insurers are under above-average pressure from stakeholders to come into line with ESG priorities, as the industry feels it lags on some key metrics, a survey of insurance executives for the  DWF law firm showed.

Some 28% of insurance executives admit their own firm's ESG performance is "weak" and 65% say that underperformance is affecting their company "a great deal," in comparison to an average of 59% of executives across all companies surveyed.

Pressure on ESG matters has increased in recent years, some 55% of senior executives report. That’s above the 46% across the full spectrum of sector who admit the same.

Only 30% of insurance sector executives said that they have fully considered the ethical and legal implications relating to ESG disclosure and commitments, whereas across all sector, the figure was slightly higher at 35%.

“There is increasing pressure on insurance companies to meet market expectations and subsequently stakeholders are often requesting ESG information from their suppliers,” DWF’s leader for insurance, Claire Bowler (pictured), said.

"Insurance companies know they need to catch up and there is increased and necessary engagement from Board level right across organizations," she said.

Hiring and retention create additional focal points amid rising employee and candidate expectations. 42% of insurance companies across the world said that they found recruiting key talent difficult because their ESG policies are seen as “weak”, just above the 40% mark for the broader survey panel.

“The clear message from our survey is that companies not only understand the need to have a strategy for ESG, but that without one there are clear long-term risks and liabilities," Kirsty Rogers, global head of ESG at DWF, said.

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