Global risk assessor Moody’s Analytics has announced its new environmental, social and governance (ESG) Insurance Underwriting Solution for property and casualty (P&C) insurers.

Moody’s says the solution will enable insurers to factor ESG-associated risks into their “commercial underwriting and Michael Steelportfolio management”.

It says the framework came in collaboration with global specialty (re)insurer Chaucer Group to help integrate more comprehensive risk capabilities and approaches.

Risk Management Solutions (RMS), a Moody’s subsidy, GM Mike Steel says “the combination of data, technology and industry knowledge” will allow the risk assessor to provide transformative new insights on ESG risks and opportunities.

Colin HolmesThe risk assessor says the solution will utilise company data from public and private sectors combined with an ESG assessment framework to generate risk scores of performance indicators and future trends to allow insurers to build their own view of ESG risk.

Moody’s Insurance GM Colin Holmes thanked Chaucer as a “crucial development partner” and says the “first-of-its-kind” risk solution will provide a “transparent and authentic approach to ESG risk assessment”.

John FowleChaucer Group CEO John Fowle says the reinsurance and insurance industry “has a pivotal role” in ensuring corporate clients have an optimal transition towards sustainable operations.

“This isn’t going to happen overnight but by helping clients identify areas that are in need of improvement, we can help them implement incremental changes that will pay dividends in the long term,” Mr Fowle said.

Source: Insurance News