63% of insurance CEOs confident of meeting net-zero goals by 2030

Written by Adam Cadle

30/10/2024

Sixty-three per cent of global insurance CEOs are confident that they will meet net-zero goals by 2030, latest research published by KPMG has revealed.

The KPMG 2024 Insurance CEO Outlook found that nearly one-in-ten insurance CEOs say that climate change represents the greatest potential risk to their organisation’s growth over the next three years.

More than a quarter said their ESG strategy is helping them financially – either by shaping their capital allocations or by driving financial performance.

Seventy per cent of insurance CEOs suggested they are willing to take a stand on a contentious issue and 80% said they would divest a profitable part of the business that was damaging their reputations. However, 54% said that stakeholder expectations with regards to ESG change faster than their ability to adapt their strategy.

“Insurers and brokers are both exploring how they can build ESG capabilities – particularly in relation to climate adaptation and the energy transition – to support their clients,” KPMG lead of global ESG for insurance, and partner, Roger Jackson, stated.

Competition will drive innovation. But nobody will win unless financial institutions work together to solve the challenges ahead. It will be an interesting market to watch going forward.”

The KPMG 2024 Insurance CEO Outlook is compiled from the views of 120 insurance CEOs, which was conducted between 25 July and 29 August 2024, providing unique insight into the mindset, strategies, and planning tactics of CEOs.

All respondents oversee companies with annual revenues over US$500m and a third of the companies surveyed have more than US$10bn in annual revenue. The overall CEO survey included CEOs from 11 key markets (UK, USA, Australia, Canada, China, France, Germany, India, Italy, Japan, Spain) and 11 key industry sectors, including insurance.

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