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2021 Focus Series: ESG in the United States Insurance Industry

  • Report

  • 32 Pages
  • March 2021
  • Region: United States
  • Conning, Inc
  • ID: 5530877
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?

Table of Contents

1. Introduction2. Why Now?
3. ESG: A Working Definition
a. The U.S. Lags, but is Now at a Tipping Point
b. ESG Goes Mainstream
4. The Challenge of Measuring ESG
a. “If You Can’t Measure It, You Can’t Improve It.”
b. Who is Doing the Measuring?
5. Ever-Expanding Regulations and Disclosure Requirements
a. SEC Expanding ESG Risk Disclosure
b. NASDAQ’s Proposal for Board Diversity
c. Office of the Comptroller of the Currency
d. NAIC and Individual State Regulators
e. Rating Agencies
6. The “Triple Bottom Line” Accounting Standards
a. “Triple Bottom Line” Accounting a Base for ESG Accounting?
b. No Specific Standards from FASB, GASB, or IASB…Yet
7. The Movement Toward Establishing Standards
a. PRI
c. TCFD (Task Force on Climate-related Financial Disclosures)
d. Projects that Cross Organizations
8. The Path Forward
a. Insurance Industry’s ESG Response, the Time is Now

Companies Mentioned

A selection of companies mentioned in this report includes:

  • IBC
  • Deloitte
  • Ernst and Young
  • KPMG
  • PriceWaterhouseCoopers