Carriers ought to flex their monetary muscle to spice up sustainability
With assets under management of around 10 trillion eurosInsurers in Europe have a lot of financial leverage to drive change that fosters sustainability they deserve more trust from customers.
Europe’s big insurer Enter 2021 with a head Opportunity to strengthen their commitment to sustainability.
By careful provision of their extensive financially Assets and real estate portfolios, they can significantly increase their support for environmental, social and governance (ESG) initiatives. This will Insurers deserve more trust and support from consumers who are increasingly look over big businessto demonstrate their commitment to a sustainable future. Requirements for companies Be Forces for the “social good” are Climbing after the COVID-19 pandemic.
Our global consumer research shows that 66 percent of Retail buyers believe the COVID-19 pandemic has increased the need for businesses Help Improvement of social and environmental conditions. A similar proportion of consumers would like companies to “back down better” long-term, sustainable, and fair Investments.
With assets under management of around €10 trillionInsurers in Europe have a lot of money Muscle too Driving changes that promote sustainability. allianceWith, Aviva, AXA, and Zurich Insurance, to the example, are already using their investment Capital allocation as a lever to promote sustainability. She’re trimminging Investments in organizations like miners who cause significant environmental damage. Something that carrier are also increase their funding by environmentally friendly Green energy company. These funds will increase over the next few years.
“Few strategic decisions are more important than the allocation of capital.”
Sustainable insurers, as I mentioned in this blog series, Put sustainability at the heart of your business strategies. It guides all important decisions. And a few strategic decisions are more important than where to allocate capital. Progressive carriers who want to become sustainable insurers are increasingly considering sustainability when making investment decisions.
Sustainable insurers will Don’t just switch investments away from companies that harm the environment Put capital in more environmentally friendly alternatives. They will also direct funding for companies that have poor social responsibility or governance recordsGuardian Companies that are better corporate citizens. Öur research with the United Nations Global Compact found that company which meet widely accepted ESG standards have much larger operating margins than her Counterparts that were slow to support sustainability. What’s more, Investment funds who invest in IT G-compliant companies are starting to surpass their traditional ones Peers. As ESG investments continue to rise and the cost of capital becomes more attractive, returns should rise. This will both further increase the attractiveness of ESG investments for fund managers and have a broader indirect influence on investment decisions.
Insurers can also increase their commitment to sustainability by Manage your real estate assets more effectivelyeffectively. Buildings make up 40 percent of that European Unionannual energy consumption and 36 percent of its CO2 emissions;; even more than the transport sector. From iInvest in, renovate, energy-efficient buildings her extensive Office and residential property, to reduce Power consumption and usage environmentally friendly Power sources, insurer can make great strides towards their sustainability goals. Using aAdvanced digital technologies for collecting and analyzing large amounts of critically from multiple sources, they can be dramatic improve their energy management. We helped a European retailerFor example, reduce total energy costs by 50 percent.
“Less than a third of consumers trust insurers to look after their personal information.”
Greater support for sustainability will help insurers gain more trust from their customers. Consumer confidence in insurers has decreased in recent years. For example, less than a third of consumers trust insurers to look after their personal information. This was an important insight from us 2020 Global consumer survey for financial services. Last year, 40 percent of consumers showed confidence in their insurer’s ability to maintain their personal information.
The COVID-19 pandemic appears to have particularly weakened trust among citizens consumer in Europe. We only have half of all insurance customers advertised in Europe for our Consumer Pulse Survey I believe their provider gave them the support they needed to deal with the problem Follow the pandemic. In North America it was almost 70 percent. However, communication is an area that most insurers need to improve. Only one in five insurance customers believes that their provider communicated clearly and effectively with them in responding to the pandemic.
Insurers that adjust their assets under management to support ESG initiatives will undoubtedly strengthen their sustainability traits. However, in order to encourage more trust with their customers, they havewill also need to communicate better with their policyholders. Sharing their sustainability goals and achievements with consumers who are increasingly concerned about the well-being of their communities and their natural environment would be one welcome Move. Sustainability is an issue that affects us all.
Learn more about how carriers can transform ssustainable IInsurers check out the links below. Alternative, send me a message. I would like to hear from you. Wish you and your loved ones the very best in 2021.
Five predictions for the insurance industry in 2021 – Kenneth Saldanha.
Delivering the Decade: The UNGC Accenture Sustainability Strategy CEO Study.
The green behind the cloud.