Expected rise in ESG importance in the global insurance sector 2022

Almost 60 percent of insurance CEOs globally expected stakeholder demand for increased reporting and transparency on ESG issues, according to a survey carried out in mid-2022. The ESG scores of the world's biggest insurance companies differ depend on which ESG score provider is looked at.

Net-zero shift: Where to invest?

Insurers place a high priority on investments in the low-carbon transition, emphasizing the importance of clean-energy infrastructure as a key prospect. In 2023, a significant proportion of insurance executives perceived clean energy infrastructure as an investment opportunity linked to the transition to a net-zero economy. When it comes to the public market in the context of net-zero, the share of executives that viewed green bonds as an investment opportunity arising from the transition to zero stood at 37 percent.

Roadblocks to executing sustainable strategies

As outlined by insurance executives, current market volatility is one of the major hurdles in implementing a sustainable strategy, cited by more than fifty percent of those surveyed. Other key obstacles pointed out by insurers were the uncertainty of generating consistent returns through sustainable investments and the integration of sustainability into the asset allocation framework. Additionally, unclear regulatory requirements pose a significant challenge for insurance executives to allocate assets for ESG investments.