Responsible underwriting By ingesting new forms of data and We understand the shift from fossil fuel to getting comfortable with probabilistic data an energy-efficient world is more than a modeling techniques, specifically within destination. It is a journey, and we recognize the environmental and societal spaces, the role the insurance industry plays in we’re enabling underwriters to make more supporting that evolution for users, buyers, sustainability-friendly decisions. and service providers. Environmental We also saw a spike in investment in sustainability, and the impact of climate and sustainable solutions, over US$60 Billion urban change, have been a critical focus in 2022. This is especially important as of many insurers for some time, as several we consider the future of the business of have been reducing their environmental insurance. impact and making responsible choices in their underwriting and investment decisions. Looking forward, it is also a topic that Much has been done, but much is left to do, will have growing significance for future and ultimately answers still need to be found customers, employees, partners and users. to understand how to predict and prevent Gen Z employees care about environmental emerging risks affordably. factors, and they support missions that What was clear was that market participants promote sustainable practices. The sense likely need a combination of the ‘carrot or the that ‘we attract top employees when we do stick’ to speed and scale the change required meaningful work’ was shared by many of the to deal with the environmental emergency. corporations we talked to. It seems unlikely That said, Deana Murfitt’s quote summed this sentiment will reverse when Gen Alpha up the feelings of many “Why on earth do comes of age. we need a stick anyway?” highlighting the fact that with well-understood and known risks, company boards simply should become more proactive in driving change.