Insurance sector’s work in protecting people and the planet an ‘abject failure’

Written by Adam Cadle

12/04/2024

The global insurance sector’s work in protecting both people and the planet is an ‘abject failure’, ShareAction has argued.

The investment charity released a major investigation into the world’s 65 largest insurance companies, warning that both people and the planet face the triple whammy from insurance companies underwriting and investing in projects that are increasing global warming, damaging the natural environment and failing to protect human rights.

ShareAction revealed that just two of the insurers investigated have committed to rule out underwriting four of the world’s most controversial fossil fuel projects; two thirds of the insurers failed to exclude underwriting for companies producing controversial armaments, such as chemical weapons and cluster bombs; and 30% of insurers assessed scored zero for policies that would protect the natural environment and biodiversity.

To show how the top 65 insurers are performing, the report created three league tables; one for P&C insurers, one for life and health insurers and one for Lloyds of London managing agents. These rated insurers in each of the three business categories from best to worst scoring them across 30 key standards. Just two institutions received more than half the available points in the survey, both based in France: AXA Group (52%) in the P&C ranking; and CNP Assurances SA (51%) in the life and health ranking.

Lloyd’s of London (UK) was among the worst performers, coming third from the bottom for its group policies. Almost half of its major managing agents failed to achieve a single key standard, including Aegis Managing Agency which scored 0% in the survey. Sony Financial Group Inc (Japan) scored 0% at the bottom of the P&C ranking, closely followed by Nationwide Mutual Insurance Co (USA). Protective Life Insurance Co (USA) is at the bottom of the life and health ranking, scoring less than 1%.

Commenting on the report’s findings, head of financial sector research at ShareAction, Claudia Gray, said: “This report reveals the insurance sector’s abject failure to live up to its responsibilities to protect both people and planet. They have both a moral duty and business opportunity to adopt responsible investments and underwriting activities.”

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