Insurers committed to credible sustainability frameworks demonstrate greater risk management consistency/more stable financial outcomes

Written by Adam Cadle

03/12/2025

Insurers committed to credible sustainability frameworks demonstrate greater consistency in risk management and more stable financial outcomes, latest research published by the MSCI Institute has shown.

According to the MSCI Institute, insurers who are further along in their management of financially relevant sustainability risks appear to have better withstood shocks and periods of stress, based on a comparison of UN Principles for Sustainable Insurance (PSI) signatories and non-signatories within MSCI’s ESG Ratings coverage over five years that ended 31 December 2024.

PSI signatories observed tend to be at a more mature stage in adopting practices to manage sustainability risks in underwriting and investments compared with non-signatories.

Furthermore, the research said “PSI signatories’ stronger management of sustainability risks coincides with their attracting a larger share of investments indexed to MSCI’s Sustainability and Climate Indexes, as of 30 June 2025”.

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