ESG in insurance

Insurance companies, as the second-largest group of asset owners behind pension funds, are expected to play a critical part in the transition to a greener economy. Not only can they drive change through responsible operations and asset allocation, but they can also incentivize other businesses and individuals by considering environmental, social, and governmental (ESG) factors in underwriting. Regulatory drivers in different jurisdictions mean that insurance clients are at various stages of their ESG maturity.

• What is my current ESG ambition and maturity?
• What are the key market, customer and competitive trends which need to be considered within the context of ESG?
• What are the potential ESG opportunities and risks?
• Which opportunities are most value enhancing?
• What are the key platforms for the ESG strategy?
• What is required to execute upon the identified ESG platforms?
• What is the sequence of activity and investment required?

ESG can have a significant impact across the whole business and insurance functions. KPMG is positioned to help insurers navigate this transformative journey, and ensure their business is future-proof. To do so, we address ESG from a comprehensive perspective based on 4 pillars:

• ESG Strategy: We can support you in shaping your strategy to address ESG topics, from defining your position on ESG matters, to designing an adequate operating model and the adaptations needed to your product offering. We can also help you build an appropriate transition plan as part of your decarbonization journey.
• ESG Risks and Actuarial Services: We can support you in the end-to-end integration of ESG in your risk framework, including governance, risk assessment, quantification and stress testing (e.g. ESG within ORSA process), risk appetite and metrics, and compliance with emerging regulations.
• Sustainability Reporting: We can support you in your disclosure of sustainability information in compliance with reporting requirements, including end-to-end CSRD support and the EU taxonomy.
• ESG Data & Tooling: We can support you in defining and selecting the adequate (external) partners for data and technology to automate ESG-related processes.