Insurers need support on understanding climate investment impact, study finds

Written by Adam Cadle

28/08/2025

Insurance asset managers and investment management firms working with insurers need more support on understanding the impact of different climate scenarios on their investments, a new global study by Ortec Finance has revealed.

Around one in four respondents admit their organisation’s current understanding of climate related impact is only average, while 76% consider their understanding of the impact of different climate scenarios to be good.

More than 90% of respondents said they expect climate risk and impact investing to become more important to their organisation’s portfolio and investment strategy over the next three years. Nearly a third (29%) believe it will become much more important.

Nearly two-thirds of respondents allocate 4% of their investment portfolio to sustainable investments, such as green bonds, social bonds and impact investing.

A further fifth report that only 3% of their investment portfolio is dedicated to sustainable investments, while one in six estimate 5% of their portfolios is dedicated to such investments.

Hamish Bailey, managing director UK, and head of insurance & investment said: “Climate risk and its impact on investing looks to become increasingly important among insurers.

“A significant number of organisations in our study acknowledge they need to do more, with many admitting their understanding of the potential impact of different climate scenarios on their portfolios could improve. That points to a growing need for stronger support and a more rigorous, forward-looking approach to managing climate-related risks and opportunities, now and into the future.”

Ortec Finance commissioned independent research company Pureprofile to interview 100 senior executives working in insurance asset management or in investment management firms supporting insurers in May 2025. Survey respondents are located in the UK, France, Germany, Switzerland, Hong Kong, Malaysia, Singapore and Norway. Collectively the organisations they work for manage around $10.48trn.

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