Identifying leading insurers in ESG is a challenge for brokers – GlobalData

UK brokers struggle to identify insurers leading the line in environmental, social and governance (ESG) credentials, data and analytics company firm GlobalData has warned.

According to GlobalData’s 2023 UK broker insurance survey, which sought feedback from 250 respondents in Q1 2023, only 24.7% of respondents could identify best in class for ESG credentials.

Just under three quarters (73.7%) said they did not know which insurers were leading the way and 1.7% said “none” were.

Insurer Aviva was recognised as a leader in ESG, although only 10.4% of brokers identified it as such. Allianz received 4.8% of votes and Ecclesiastical 3.6%.

“This level of uncertainty suggests that brokers do not consider ESG to be essential when working with insurers, as very few brokers are able to identify insurers who are strong in the area,” said Ben Carey-Evans, senior insurance analyst at GlobalData.

Market chance

The survey further revealed that, when asked for factors that would contribute to working with one insurer over another, zero brokers noted ESG credentials as important.

Instead, deciding factors for brokers included flexibility in underwriting cover (23.5%), claims service quality (19.9%), price of premiums (17.9%), the quality of insurer’s product material (8%) and speed of response to queries or quotes (7.6%).

Carey-Evans highlighted that the data showed that “any insurer still has a clear opportunity to establish itself as a leader” in ESG.

He said: “Brokers not being able to pick clear leaders within this critical theme suggests that anyone who prioritises it can stand out in the theme relatively quickly.

“The more innovation and progress that brokers see from insurers, the more likely they are to prioritise it as a factor in building relationships, especially as the theme is only going to grow in importance.”