Risk & Insurance News + Notes: AIG Commits to Net Zero Greenhouse Gas Emissions Across its Underwriting and Investment Portfolios by 2050 and More

The latest happenings in the news that could impact the insurance industry.
By: | July 29, 2022

Strains on Mental and Physical Wellbeing Result in an Uptick in Online Insurance Purchases

Swiss Re Institute has released its Digital Touchpoints Build Physical and Mental Health Resilience report highlighting the increased focus consumers worldwide are placing on health and financial security.

In this third edition of the Swiss Re Institute’s global survey, responses from 11,000 consumers worldwide revealed increased online insurance purchasing trends associated with health and financial security.

Survey respondents also expressed a greater willingness to share personal health data, especially among the younger generation.
Key findings in the report include:

• Increased health concerns: Over half (60%) of respondents in emerging markets are increasingly concerned with their health as a result of the pandemic — almost 20 percentage points more than in advanced markets

• Strain on mental health: In advanced markets, one third of the population surveyed reported a deterioration in their mental health during the prior year

• Concerns over insurance: Globally, 40% of respondents are concerned about the adequacy of their existing level of insurance coverage.

Among the under-40s, 54% have researched new or additional policies in the six months preceding the survey.

“Consumers continue to prioritize their wellbeing two years into the pandemic. The re/insurance industry has an opportunity to help strengthen this resilience in the post-pandemic world,” said Paul Murray, CEO Reinsurance Asia at Swiss Re, in a press release.

“The good news is that more and more consumers are putting their faith in the industry and to make the most of this, we must collectively respond to their changing preferences by meeting their expectations of us — multiple digital touchpoints, new products for the new normal, and more efficient underwriting.”

AIG Commits to Net Zero Greenhouse Gas (GHG) Emissions Across its Underwriting and Investment Portfolios by 2050

American International Group, Inc. (AIG) has announced its commitment to achieve Net Zero greenhouse gas (GHG) emissions across its global underwriting and investment portfolios by 2050, or sooner, according to a press release.

This new commitment complements AIG’s previously articulated commitment to achieve Net Zero GHG emissions by 2050, or sooner, within its own operations.

In addition to its goal to use science-based emissions reduction targets, aligning with the latest climate science to meet the goals of the Paris Agreement, AIG has committed to the following actions with immediate effect:

• No longer invest in or provide insurance for construction of any new coal-fired power plants, thermal coal mines or oil sands

• No longer invest in or underwrite new operation insurance risks of coal-fired power plants, thermal coal mines or oil sands for those clients that derive 30% or more of their revenues from these industries, or generate more than 30 percent of their energy production from coal

• Not invest in or provide insurance cover for any new Arctic energy exploration activities.

“We are committed to a transparent journey toward sustainability advancement,” said Constance Hunter, executive vice president, global head of strategy and ESG at AIG.

“We are having constructive discussions with all our stakeholders on this important issue and look forward to reporting progress.”
As part of the efforts, AIG will work with clients and other partners.

“We will work together with our clients and distribution partners, in particular, to ensure an ongoing transition to a Net Zero future and provide guidance on feasible solutions designed to help manage climate-related risks,” Hunter explained.
In the coming months, AIG plans to share science-based targets as part of its Net Zero roadmap, including those involving its planned phase-out of fossil fuels.

AIG also plans to evolve its ESG framework to drive consistent progress across the company.

The R&I Editorial Team can be reached at [email protected].

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