Integrating sustainability into insurance underwriting is a major challenge as it needs to align with the company's culture and processes. Recent developments show insurers are prioritizing internal sustainability in response to new reporting standards like the ISSB climate requirements. Notably, insurance-associated emissions (IAEs) often exceed 50% of a company's total greenhouse gas emissions. Beyond assessing carbon intensity, underwriters now consider broader environmental, social, and ethical dimensions of risk. Our work with various insurers reveals the importance of sustainability in underwriting and the challenges they face in this transition. Insights are derived from client engagements, our Sustainability Risk Forum, and market surveys, making these findings globally relevant.
Originally published by Crowe UK, 21 May 2024
