2021 Focus Series: ESG in the United States Insurance Industry

Concerns about climate change, social justice, and equality have been increasing for years, but in 2021, these concerns are becoming mainstream in all areas of business, including insurance. This report is the first in a series, which will examine how the insurance industry is integrating ESG (Environmental, Social, and Governance) concerns into their operations and reporting. This first installment will provide an overview of ESG, current regulations and disclosures, and a summary of some of the current efforts to standardize ESG regulations and disclosures. The next three reports will, in turn, examine environmental, social, and governance concerns and what companies are doing to each of those areas. As part of each of the reports, a more detailed analysis of individual companies and their efforts in that area based on their 2020 filings will be included.

ESG issues, reporting and disclosure requirements, and regulations are changing quickly, and the changes are almost certain to keep accelerating. Insurance companies that do not stay out in front of the issues will quickly find themselves at a disadvantage.

Readers can use this report to:

• Learn about the forces driving ESG concerns
• Plan for increased disclosures on ESG concerns
• Prepare for likely upcoming regulations
• Position their companies to be a leader in ESG concerns
• Become aware of the potential consequences of taking a passive approach to ESG concerns

Key research questions for 2020

• What types of disclosures are becoming common?
• What organizations are requesting or requiring disclosures?
• What are some the challenges in preparing ESG disclosures?
• How has the range of people considered stakeholders expanded?