'The Pulse' of Benthurst - Team Perspectives

Success in a complex commercial and highly international landscape

The insurance sector, representing a significant portion of the global economy, has both the responsibility and the capability to drive substantial change. While insurance companies have traditionally been hesitant to lead in the response to climate change, this position is no longer optional.

Current Progress and Challenges

Insurance companies have begun integrating Environmental, Social, and Governance (ESG) criteria into their operations. This shift involves comprehensive collaboration across the organization and the value chain, impacting everything from product development to investment strategies. Investment management and risk management are evolving to meet these challenges, yet one crucial area remains underdeveloped: claims handling. This area holds immense potential for societal impact but has lagged behind in sustainability efforts.

The 5 Key Challenges

Holistic Integration: Embedding sustainability into all facets of the business, from underwriting to claims management.

Stakeholder Engagement: Involving all stakeholders, including employees, customers, and partners, to align goals and drive collective action.

Purpose-Driven Strategy: Developing a clear purpose that goes beyond financial performance, positioning insurance as a force for social good.  

Companies with a strong, purpose-driven strategy see 30% higher levels of innovation and 40% higher levels of workforce retention, illustrating the benefits of aligning company goals with broader societal impacts.

Adapting Investment and Risk Management: Evolving these areas to meet climate challenges, ensuring they are robust and forward-thinking. Innovative

67% of insurers are increasing their investments in green bonds and sustainable assets, indicating a shift towards more climate-resilient investment portfolios.

Claims Handling: Transforming claims processes to not only manage risk but also contribute positively to societal impact.

What does it mean to you?

The challenge of climate change is both a business and human issue that requires a collaborative, empathetic approach. By addressing these key challenges and committing to a purpose-driven strategy, insurance companies can help build a more sustainable future. The time for the insurance sector to step off the sidelines and take a leadership role is now.

For further insights and detailed strategies, we invite you to read the comprehensive study co-authored by Prof. Dr. Edward Huizenga, Managing Partner & Consultant at our firm. The study is available here.