Green Insurance Products and ESG Integration: Catalysts for Sustainable Transformation in the Insurance Sector

Abstract

In response to growing environmental concerns and the increasingly rigid regulatory demands, the insurance industry is recognising the necessity of integrating sustainability into its core operations. This research explores the pivotal role of embedding Environmental, Social, and Governance (ESG) criteria across all aspects of the insurance business, from risk assessment to underwriting and investments, as a foundation for long-term success.

Through a literature review and case studies of leading insurers, this study aims to highlight how sustainable practices enhances risk management and resilience while creating new opportunities in a market that is being progressively shaped by eco-conscious consumers. The research also examines the challenges of standardising green insurance products, the need for stronger institutional frameworks to support ESG integration, and the role of emerging technologies such as Artificial Intelligence and blockchain in driving these advancements.

The findings suggest that insurers who effectively adopt sustainability practices, supported by advanced technologies, will be better equipped to meet regulatory demands, mitigate climate-related risks, and capitalise on emerging market opportunities, thereby ensuring their continued relevance and competitiveness in the industry