Integrating ESG Principles in Insurance: A Desktop Review of Financial and Sustainability Practices
Abstract
This study examined the integration of Environmental, Social, and Governance (ESG) principles within the insurance sector, focusing on how ESG adoption enhances financial resilience, risk management, and stakeholder engagement. Employing a desktop review methodology, the study synthesized findings from peer-reviewed journals, industry reports, and policy documents to evaluate the financial and operational implications of ESG frameworks in insurance firms. The findings revealed that insurers which embed ESG considerations into governance structures, investment portfolios, and operational strategies consistently demonstrate improved financial performance, stronger risk mitigation capabilities, and enhanced stakeholder trust. The review also identified critical challenges such as ESG data fragmentation, regulatory inconsistency, and resource limitations, especially among small and mid-sized insurers. The study concluded that ESG integration is no longer discretionary but a strategic necessity for sustainable and competitive insurance operations. It recommended harmonization of ESG reporting standards, investment in ESG data infrastructure, and cross-sectoral collaboration to institutionalize ESG practices throughout the insurance value chain.
Keywords: ESG integration, insurance industry, financial resilience, sustainability, risk management, stakeholder trust, governance, desktop review.
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