LV= General Insurance, part of Allianz occupies the lowest position among the top ten personal lines insurers with respect to supporting environmental, social, and governance (ESG) initiatives, a GlobalData survey has revealed. Furthermore, The Good Shopping Guide’s assessment of ethical insurance ratings, which evaluates insurers based on criteria ranging from climate policy to corporate behavior, indicates that LV= General Insurance, part of Allianz has received a low score in this domain.
GlobalData’s 2024 UK Insurance Consumer Survey has found that among the leading insurers, Barclays leads in terms of ESG support with 12% of promoters. This positions Barclays as a leader in consumer perception regarding its commitment to sustainable and responsible practices within the non-life insurance sector. On the other hand, LV= General Insurance, part of Allianz ranks at the bottom of this group with only 2.9% of promoters.
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Promoter scores for ‘supports ESG causes’, 2024
Meanwhile, The Good Shopping Guide has recently published its latest Ethical Insurance Ratings, assessing insurers on various criteria, including climate policy and corporate behavior. In the mainstream insurance market, Aviva and its subsidiaries, Quote Me Happy and General Accident, achieved impressive scores of 92 out of 100. Aviva’s commitment to achieving net-zero carbon emissions by 2040 and its decision to abstain from political contributions are particularly noteworthy, especially in an industry often criticised for its environmental impact and political entanglements. This commitment is further validated by GlobalData’s survey, which ranks Aviva third in terms of the share of promoters for supporting ESG initiatives.
In contrast, several well-known insurers received low ratings. LV= General Insurance, part of Allianz and Allianz itself found themselves at the bottom of the rankings, each earning just 18 out of 100. These companies faced criticism for their lack of transparency in reporting, their failure to divest from harmful industries such as fossil fuels and arms, and their absence of credible environmental or social governance policies.
However, Allianz has had a Climate Change Strategy in place since 2005 and continually reviews it to align with the latest science. In September 2023, the company announced its Inaugural Net-Zero Transition Plan and 2030 decarbonization targets across proprietary investments, property and casualty and commercial underwriting, and its own operations.
Supporting ESG causes is increasingly vital for insurers, as it not only reflects a commitment to ethical practices but also addresses the growing concerns of consumers and investors regarding sustainability and social responsibility. Insurers that prioritize ESG factors can enhance their reputation, build consumer trust, and attract a more conscientious customer base. Moreover, as climate change and social issues become more pressing, regulatory bodies are likely to impose stricter requirements on companies to disclose their ESG practices. Insurers that proactively embrace these principles may find themselves better positioned to navigate regulatory changes and mitigate risks associated with environmental and social challenges.
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By GlobalDataIn summary, the importance of supporting ESG causes cannot be overstated for insurers. As consumer awareness and regulatory scrutiny increase, those that align their business practices with ethical and sustainable principles will likely thrive, while those that fail to adapt may struggle to remain relevant in an evolving marketplace.
