The Future of Insurance - Bryan Falchuk on ESG

• • We are facing a cliff when it comes to matters like Climate Change and many of the social issues
  • If there is one theme that has become central to so many discussions in the Insurance industry lately, it is Environmental, Social and Governance, or "ESG".
  • It is not just about the future of Insurance, but the future of our economy, society, and planet overall.
  • Given how large, complex, and hard to pin down to measurable specifics it can be, ESG is also an area many insurers struggle navigating.
  • With the increased focus on ESG globally of customers, partners, governments, investors, and other key constituents, being able to navigate it successfully is becoming table stakes.
  • That focus is only sharpening. With the new report from the United Nations' Intergovernmental Panel on Climate Change (IPCC) that was released on 9 August, 2021, the alarm bell on the environment is ringing louder than ever. As the UN called it, this is a "code red for humanity." 
  • And Climate is only on one component of ESG.
  • ESG encompasses a much broader set of ideas and issues that must be addressed, like"
    
    • Diversity, Equity and Inclusion;
    • Social justice;
    • Governance and transparency; and more.
  • Sometimes, these issues may be at odds with each other. For example, when making decisions for ecological reasons, we may lead to the displacing of people from their homes or their sole means of earning a living.
  • Or it may be hard to get a clear picture of our performance or how to measure it, which can make it hard to comply with increasing reporting requirements from governments, regulators and rating agencies.
  • Navigating the issue of ESG can be complex, interwoven and overwhelming.
  • We need clarity and structure for how we, as an industry, can think about, develop and execute against our ESG goals.
  • Bryan presents a three-part structure for the Insurance industry to think about ESG
    
    1. Corporate Citizenship - the power of our first party practices
    2. Investing in Change - supporting better outcomes through investments
    3. Enabling the Market - the impact of what we choose to insure
• • In each of these areas, Bryan provides examples and guidance on how we, as an industry, can move forward proactively and effectively on the issue of ESG.
  • You can access his piece on ESG, free thanks to support Duck Creek, at www.future-of-insurance.com/esg
  • Mentioned in the episode is Ed Halsey, who you can follow on YouTube
  • Ema's also worth following on LinkedIn

This episode is brought to you by Medallia (Medallia.com), and the book series, "The Future of Insurance: From Disruption to Evolution" by Bryan Falchuk (future-of-insurance.com).