Looking at the social aspect of ESG, more consumers expect large businesses to help address society’s biggest problems. Insurers certainly have a responsibility to help address the global retirement savings gap. For example, they can work with governments to provide education about the importance of life insurance and retirement savings. They can also help design solutions that make it easier to save money, set financial goals, make better financial decisions and increase access to healthcare. AI-enabled underwriting models must be designed for fair and unbiased pricing decisions.
Along with the commitments of many large insurers to address climate change, closing the savings and protection gaps clearly demonstrates the industry’s purpose of protecting individuals, businesses and communities against the most severe threats. It’s not enough to try to get back to business as usual; as Ed observes in the video above, “the industry right now really has an opportunity to work with governments, to team on the education front … so that protection is front and center for everyone.”
It’s evident that ESG strategies are critical to the resiliency and long-term success of companies. As Isabelle and Ed make clear, the insurers that get ESG right and truly live their purpose regarding climate change will strengthen their businesses – a classic case of doing well by doing good.