International law firm DAC Beachcroft has today released its new collection of thought leadership for the global insurance market, in which it examines the opportunities presented by ESG (environmental, social and governance factors) to build resilience and a sustainable future. But, the report cautions, unlocking ESG’s full potential to capitalise on these opportunities will require greater collaboration between government, business and regulator.
Introducing the collection of four articles, Helen Faulkner, partner and Global Head of Insurance at DAC Beachcroft, says, “There is a need for joined-up thinking as never before, as we face an almost relentless conveyor belt of disruptive issues that have the potential to undermine insurers’ value propositions and cause societal dislocation. Harnessing the power of a coherent, joined-up ESG strategy is going to be key in meeting the challenges we face. The insurance industry has a huge part to play in the three-way discussion needed between governments, businesses and regulators, given its international understanding and experience.
“The pressure to make ESG central to business strategy comes from all round,” she continues. “It comes from shareholders. It comes from clients. It comes from colleagues where it is vital in attracting and retaining talent. And it is exciting to see young people asking some really insightful questions about ESG issues.”
Emphasising the importance of collaboration, Professor Paul Watchman, Special Legal Adviser to the United Nations and a contributor to the collection, notes, ”If we don’t have government, business and civil society all rowing in the same direction, we are not going to be able to achieve anything. This is something on which we must have global co-operation.”
The lead article, Unlocking The Potential of ESG: Resilience, Sustainability and Collaboration, considers why greater collaboration is critical for ensuring resilience and a sustainable future. The insurance industry and the businesses in its supply chain have a key role to play in ‘shaping and supporting the way commerce and society responds’.
The three further articles examine in more detail the themes of resilience, sustainability and collaboration.
Resilience: New Emerging Threats Challenge Insureds and Insurers examines why insurers need to face up to the challenges of ESG-washing, supply chain issues, cyberattacks and ransomware, if they are to continue to deliver for their clients and society.
Sustainability Through Technology: Managing The Transition reflects on how the UK could become a centre of technological excellence that ‘attracts, supports and retains entrepreneurial starts-ups that will drive the global economy in the future’, but only if it can evolve its regulatory and legislative frameworks so they are equipped for this digital era.
“The demand for better, faster and more sustainable products and services in every sector is putting significant pressure on existing regulatory and legislative frameworks,” Charlotte Halford, partner and insurtech and digital insurance lead at DACB, concludes. “This is a key example of where government, regulator and private sector need to work together to build a better future.”
Collaboration: Breaking The Silos To Mitigate Risks considers how collaborative action is essential as climate activist litigation and proposed anti-terrorism Protect Duty legislation transfer societal responsibility from government to the private sector, creating new liabilities.
The full collection can be accessed on DACB’s Informed Insurance site here: https://insurance.dacbeachcroft.com/ and as an audiobook here: https://insurance.dacbeachcroft.com/the-listening-post/.
