US insurers face ESG demands

Insurers in the United States have said they are increasingly facing questions for policyholders and shareholders over their environmental, social and governance (ESG) credentials.

In a survey by ratings  firm AM Best six in 10 US insurance companies agree that demand from stakeholders to explicitly consider environmental, social and governance (ESG) factors in their decision-making is growing.

Best said  compared with Europe, the US insurance industry is “still in the nascent stages of ESG integration”.

Given the rising recognition of ESG, AM Best surveyed rated property/casualty, life/annuity and health insurers and reinsurers operating in the United States on their approaches to ESG principals and found that carriers’ focuses vary by segment.

While property/casualty insurers’ responses showed that they focus more on environmental risks in their ESG engagement, life/annuity insurers said they concentrate mainly on investment risk, given the importance of yields, liquidity and asset-liability matching to their businesses. Health insurers have put greater ESG attention on the social impacts of health equity, which has been subject to added scrutiny during the pandemic, to eliminate disparities in health outcomes.

“Companies are evaluating how to integrate ESG factors into their business models, but to be viable they must also identify and assess how these factors can impact their business from a risk perspective, while also identifying new opportunities,” said Jason Hopper, associate director, industry research and analytics, AM Best.

According to the report, “US Insurers’ Perceptions of ESG,” the survey found that all three US insurance segments are focused on corporate governance.

“Survey results show that insurers believe there are risks to ignoring stakeholder pressures related to ESG factors, and particularly with regard to diversity and inclusion, carriers generally view corporate governance as key to managing and mitigating reputational risk,” said Rosemarie Mirabella, director, AM Best.

The report found:

  • Between 40-50% of surveyed US (re)insurers, and 51% of stock companies compared with 42% of mutual companies, are actively engaged with ESG;
  • Over half of the respondents in the property/casualty and life/annuity industries agree that proper understanding and integration of ESG factors is increasingly critical to the long-term viability of their business, compared with 39% from the health insurance industry;
  • Roughly 60% of the US (re)insurance industry seeks greater clarity from regulators, particularly with respect to identifying, measuring and reporting ESG factors; and
  • Integration of ESG factors into the investment process appears to be ahead of underwriting.

Surprisingly less than a quarter of the survey respondents in each segment said they believed it is extremely or very important for underwriters to consider ESG factors in the underwriting process.

Given the rising recognition of ESG, AM Best surveyed rated property/casualty, life/annuity and health insurers and reinsurers operating in the United States on their approaches to ESG principals and found that carriers’ focuses vary by segment.

Follow us on twitter: @risksEmerging

MobaXterm Professional Edition v21.5.0.4826 Full Activated – Discount 100% OFF https://www.dr-farfar.com/mobaxterm-professional-edition/ #infosec #bugcrowd #bugbountytips #bugbountytip #CyberSecurity #100DaysOfCode #Malware #CodeNewbie #BugHunter #Javascript via @3XS0

Angry employee stole his company’s data, blackmailed the bosses https://cyberiqs.com/angry-employee-stole-his-companys-data-blackmailed-the-bosses-and-dropped-their-stock-by-20-best-example-of-insider-threat/ #infosec #infosecurity #cybersecurity #threatintel #threatintelligence #hacking #cybernews #cyberattack #threathunting #cloudsecurity #cloudcomputing #malware #ransomware #devops #dfir #cyber

An automated solution for background screening of candidates?
We're here. 😉

#MachineLearning #DataScience #5G #100DaysOfCode #Python #Cybersecurity #BigData #AI #IoT #DeepLearning #ArtificialIntelligence #NLP #robots #Industry40 #tech #DEVCommunity
#javascript #TechnoSupport https://twitter.com/HungLee/status/1462711663904362500

Hung Lee@HungLee

'Negative Content' Breakdown

Out of 9708 sampled job seekers who underwent social media background screening (with consent), instances of negative content was distributed as follows 👇

Sexism in the lead, followed closely by Homophobia

USA best quality service http://Usatopservices.com
#buy_google_reviews
#buy_google_5_star_reviews

#pokemon #blacktechtwitter #Cybersecurity #usatopservices #infosec #100DaysOfCode #node #nodejs #coding #js #angularjs #reactjs #tech #javascript #html #womenwhocode #301DaysOfCode

Uganda launches road-building in Congo to boost trade http://reut.rs/3pwWOO2

Former GOP Sen. David Perdue plans to announce Monday that he's mounting a primary challenge against Georgia Gov. Brian Kemp, multiple reports say https://cnn.it/3InqRAj

17 Malware Frameworks Target Air-Gapped Systems for Espionage |
#cyberdefense #cybersecurity #infosec #informationsecurity #datasecurity #insiderthreat #vulnerabilitymanagement #devsecops #endpointsecurity
https://www.securityweek.com/17-malware-frameworks-target-air-gapped-systems-espionage

Didi Global shares plunge more than 20% on plan to delist from NYSE

https://www.business-standard.com/article/international/didi-global-shares-plunge-more-than-20-on-plan-to-delist-from-nyse-121120400065_1.html

#cybersecurity #infosec

Load More...
SHARE: