Some 41.9% of industry professionals in the insurance sector consider it essential for the industry to offer environmentally friendly products and services, new data by GlobalData has found.
According to the data, which was garnered from a Q3 2025 poll by GlobalData conducted on Verdict Media sites, some 16.2% of respondents said that offering environmentally friendly products and services was ‘moderately’ important, while 30.5% viewed the offering of green products as ‘unessential’.
Sustainable insurance
“The challenges posed by climate change have led to the emergence of green or sustainable insurance, encompassing products and practices that integrate ESG factors into the value chain,” commented Beatriz Benito, lead insurance analyst, GlobalData.
“Equally, consumer awareness about environmental issues has increased, with many now expecting to see eco-friendly options, including in insurance.”
Role to play
The findings are supported by data from GlobalData’s 2024 Emerging Trends Insurance Consumer Survey, which indicated that 51.3% of consumers believe insurance companies have a role to play in addressing climate change. Some 28.1% disagreed with this statement, while 20.6% were uncertain.
In addition, the same study indicated that 59.1% of consumers said that they would pay more for insurance from a company committed to ethical and sustainable practices, with 29.6% saying that they would be willing to pay as much as 5% more for such a policy.
“Besides growing consumer demand, there are further reasons why insurers should offer green products, such as to mitigate risks,” Benito added. “Climate change is leading to more frequent weather events and natural disasters such as wildfires, floods, and tsunamis, which are resulting in higher claims. Insurers can offer green products in a bid to mitigate climate-related risks.”
She added that insurance firms are increasingly offering discounts for energy-efficient homes and cars, as well as sustainable building materials to mitigate the impact of climate change.
“Governments and regulatory bodies are increasingly implementing regulations that require businesses –including insurers – to adopt ESG practices, as well as making disclosures,” she said.
“Ultimately, insurers which can demonstrate environmental commitments will enhance their brand reputation and improve trust among consumers, which will in turn help them to position themselves as forward-thinking and responsible organisations while also potentially enabling them to charge more for their products.” Read more here.
