Moody's Begins ESG Assessments for P&C Insurers
Moody's Analytics, a global risk assessor, has introduced a new environmental, social, and governance (ESG) Insurance Underwriting Solution for property and casualty (P&C) insurers.
According to Moody's, the technology will allow insurers to include ESG-related risks into their "commercial underwriting and portfolio management."
According to the company, the framework was developed in partnership with global speciality (re)insurer Chaucer Group to aid in the integration of more comprehensive risk capabilities and approaches.
According to Mike Steel, GM of Risk Management Solutions (RMS), a Moody's subsidiary, "the mix of data, technology, and industry experience" would allow the risk assessor to give "transformative new insights on ESG risks and opportunities."
According to the risk assessor, the solution will use company data from the public and private sectors, along with an ESG assessment methodology, to provide risk scores of performance indicators and future trends, allowing insurers to build their own view of ESG risk.
Colin Holmes, GM of Moody's Insurance, thanked Chaucer for being a "crucial development partner" and stated that the "first-of-its-kind" risk solution will deliver a "transparent and authentic approach to ESG risk assessment."
According to Chaucer Group CEO John Fowle, the reinsurance and insurance industry "plays a critical role" in assuring corporate clients' optimal transition to sustainable operations.
“This isn’t going to happen overnight, but by helping clients identify areas that need improvement, we can help them implement incremental changes that will pay dividends in the long term,” Mr Fowle said.
Source: Insurance News