FOREWORD: LINK
The nexus of ESG and D&I
The public and customers now have greater expectations of insurance firms, which are aligned to those of investors for key ESG factors—which include D&I, says Maurice Rose, senior manager, enterprise risk management and MS Amlin and Link co-chair.
Post the COVID-19 pandemic, with staff returning to the office, discussions around diversity and inclusion (D&I) have transitioned from the spare room or kitchen table to in-person and hybrid events. The pandemic and working from home introduced a hiatus in face-to-face interaction and with that, the sense of community and opportunity to create safe spaces was diminished.
While technology has facilitated and supported day-to-day interaction, there was and is no substitute for those in-person connections and the ability to collaborate.
There is a continued focus on allyship across insurance, and one key aspect of allyship is calling out bad behaviours. The ability to do so in many circumstances is easier and more obvious to do in person, but new ways of working and digital interaction have created an environment where discrimination can easily go unnoticed.
With greater use of communication platforms such as WhatsApp, we must as an industry and at an individual level, look to call out discrimination in all forms and on whatever platform it arises. We must adapt to the hybrid world and ensure that D&I remains high on the corporate agenda and is not limited to the office or the home.
“Insurance firms can expect to see the PRA challenging their approach and benchmarking against peers.”
Maurice Rose, Link
D&I remains high up on the regulatory list of priorities, with the UK Prudential Regulatory Authority (PRA) writing to the chief executive officers of insurance firms to outline its priorities for 2022. The letter highlighted the direct links between an inclusive firm and the primary objectives of the PRA. In a speech in March 2022 the executive director of insurance supervision noted that research shows evidence of correlations between D&I and positive outcomes in risk management, good conduct, healthy working cultures and innovation.
It is clear that the PRA will look to engage with firms on D&I through its continuous assessment process and insurance firms can expect to see the PRA challenging their approach and benchmarking against peers.
The wider agenda
With my enterprise risk management hat on, I see many firms now thinking about D&I in the context of the wider environmental, social and corporate governance (ESG) agenda. The public and customers now more than ever have greater expectations of insurance firms, which are aligned to those of investors for key ESG factors—which include D&I. It’s certainly clearer than ever that the focus on D&I is not simply the right thing to do, but a business imperative. It has, however, highlighted that many firms simply do not have the data to track or report on progress effectively.
Many organisations will have ESG leadership in place, but it’s vital that this leadership is integrated and has support from D&I-focused individuals and decision-makers. Decisions around D&I and the links with ESG can be somewhat nuanced and often subjective so it’s essential to have input from across the business when discussing and setting ESG strategies.
“Thinking about D&I through an ESG lens will help to bring together complementary strategies.”
It’s important that as an industry, and at a firm level, we use our economic weight to bring change. This can range from the charities we support, the communities we serve and those that we choose to do business with. D&I and wider ESG factors should be considered at the point of underwriting and when making investment decisions and setting investment strategies.
At MS Amlin, we are now considering the ‘S’ element of ESG and thinking strategically about how this aligns to our wider business strategy and values. This is in tandem with the assessment of climate risk and other environmental considerations. Thinking about D&I through an ESG lens will help to bring together complementary strategies and accelerate the pace of meaningful change.
There is a huge amount of great work under way across the insurance industry, and I want to take the opportunity to highlight Link, the cross industry LGBTQ+ network, which has recently run a successful art exhibition for Pride Month, alongside Artiq, the international art agency, to support diverse artists and raise money for LGBTQ+ and artistic causes.
Link, as the cross-insurance industry LGBTQ+ network, looks to support the insurance industry to become the employer of choice for the LGBTQ+ community. I would encourage you all to find out more about Link by visiting the website, promoting the work of Link internally within your organisations and come to a future event.
To find out more visit www.lgbtinsurancenetwork.co.uk/
Image: Shutterstock / Vadym Pastukh
