Document summary
The report examines the trends impacting the insurance industry and the ESG investment risks and opportunities of 149 public and private insurance companies. Low insurance rates are placing pressure on insurers’ profits, and according to Europe’s pension regulator, one in 12 issuers is not prepared to comply with the Solvency II Directive, which takes effect in January, 2016. While insurers see salvation in technology, big data and other digital technologies pose substantial risks and may not be fully priced in by the market. Based on our research, the most material environmental, social and governance (ESG) issues for the sector are responsible finance, financial product governance and business ethics. Our top market performers are Allianz, Storebrand and Swiss Re. These three companies have implemented best-in-class ESG programs and are well-positioned to deliver shareholder value going forward.