The Future of Insurance Podcast – Bryan Falchuk
Founder & Managing Partner, Insurance Evolution Partners and Author of "The Future of Insurance"
Season 1, Episode 25, October 12, 2021
The Insurance industry is facing a need to change beyond any we’ve faced before.
That thing is ESG. Environmental, Societal and Governance.
While many in the industry are waking up to ESG, and some have been taking action for years, the industry as a whole needs to do more.
The question is how, and how do we even think about it?
In “The Future of ESG in Insurance,” Bryan shares the three strategic ways of looking at the issue, and what we can do about it so we, as an industry, can move forward.
Bryan Falchuk turns into the guest in this episode, with guest host Ema Roloff, to talk about this issue and the report he’s just published on the issue. You can download the report for free at http://future-of-insurance.com/esg thanks to the support of Duck Creek Technologies.
Highlights from the Show
- 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
- Corporate Citizenship – the power of our first party practices
- Investing in Change – supporting better outcomes through investments
- 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
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Thank you to our sponsor
Special thanks to Medallia for sponsoring this episode.