Legal and regulatory update for the life and health insurance sector
FSC Future ready: a wake-up call

How will your organisation tackle climate change?

You just have to look at the news recently to see any number of articles related to climate change, whether it’s the UN climate change report calling out fuel-inefficient SUVs through to councils proposing targeted rates to reduce emissions. At every level of government, changes are being required of businesses and consumers to reduce emissions. Our clients are increasingly asking the insurance industry what it is doing to help.

Perhaps, in part, because the sector is a relatively low emitter of greenhouse gases this has not been a major focus for us. The legal requirement to make climate related disclosures became law only in October last year. For general insurers disclosures have been focused on increased risks from extreme weather events. For life and health insurers the requirements are more focused on risks to investments as industries transition. Clients and potential clients are becoming increasingly interested in how their expenditure supports their environmental and social concerns. Some are seeking out certifications or other evidence that the companies they do business with have values consistent with their own.

Here at Chatswood Consulting we want to develop a high-level understanding of insurers’ Environmental, Social and Governance (ESG) policies. Is your organization investigating the effects of climate change on your business? Do you already have strategies in place? What sustainable practices are you incorporating?
We’ll be reaching out soon to find out how the industry is doing in this arena.

This information will, initially, form part of a view reflected back to industry in our quarterly reporting to enable clients to better benchmark themselves against other industry participants. In the medium-term we plan to include measures of ESG policies in our company research.

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