As environmental, social and governance issues are increasingly becoming a bigger topic of discussion in the insurance industry, Thomas Troy, president and CEO of CSAA Insurance Group—a provider of auto, home and other personal lines of insurance—says he is hoping to “walk the talk” and lead by example.
In 2020, the company began fully transitioning to an ESG framework with the goal of establishing itself as a leader in this area. It has purchased renewable energy, launched a Community Investments Program that funds development initiatives in low-income communities, and set a goal of achieving carbon neutrality by 2025, among other initiatives. CSAA is also working toward enlarging its fleet of electric vehicles, supporting its employees working from home, and prioritizing ethnic diversity among senior leadership and management.
This effort comes as not only regulators and investors but also employees, business partners, agents and customers are expressing increased concern about ESG-related issues, and along with it, expectations for how companies should manage them, according to a PwC survey called ESG: A Growing Sense of Urgency.
In PwC’s survey, 76 percent of consumers reported that they would discontinue their relationship with companies that treat the environment, employees or the community in which they operate poorly. With this in mind, 36 percent of global insurers surveyed reported that customers are their top priority when they are defining their ESG strategy, followed by regulators (26 percent) and shareholders (16 percent).
However, the survey found that while many insurers have high ESG ambitions and responsibilities, there are gaps in capabilities. While 85 percent of global insurers told PwC they believe ESG will impact all functions of their business, only 35 percent of global insurers said their organization’s strategy is “significantly focused” on all three pillars of ESG.
Troy is joining Carrier Management’s Strategy Sessions webinar series to discuss his approach to ESG; the importance he sees in setting an example for the industry; how CSAA is working to serve its employees, customers and communities; and the benefits and challenges the company has seen from this approach.
During this webinar discussion, he’ll talk about the biggest challenges insurers can run into when establishing an ESG framework and the most important steps to bring ambitious ESG goals to fruition. He’ll also discuss the importance of continuing to analyze and reassess ESG efforts, the insurance industry’s ESG successes and what it still has to learn, and the future of ESG not only for CSAA but for the industry as a whole.
Tune in to the discussion on Tuesday, Oct. 11, at 1 p.m. EST/10 a.m. PST.