We have identified three key drivers arising from climate change that are causing insurers to adapt:
Driver 1: changes in values
Society’s expectation for everyone involved to act responsibly and considerately is continuing to grow as a whole. For an insurer, the roles of the employee and the policy holders are of particular interest. For employees, it is becoming increasingly important to work for an employer that operates sustainably. Customers are becoming more and more concerned with the company behind a product: what do its social awareness and actions look like, and how does it design its products to be as sustainable as possible?
Driver 2: regulation
Legislators have also long since reacted to the need for sustainable action and have enacted numerous new regulations and laws that provide the legal framework for the economy. The regulatory requirements aim at integrating ESG criteria into business processes and thus at the continuous improvement and consideration of sustainability aspects in all economic activities.
Driver 3: digitalisation
Technological progress is noticeable in almost all areas of life these days: it has an impact on society as a whole and has contributed to both economic and socio-cultural change. However, extensive digitalisation efforts are raising more and more questions about sustainability and resource consumption. This is because an increased demand for energy, as well as for natural resources, can have a negative impact on CO₂ emissions. In future, technological development will only be charted in accordance with sustainability goals. At the same time, said development must promote the implementation of solutions that can be used to actively counter climate change.