Finance Watch urges TPT to issue comprehensive guidance on the insurance sector focussing on real-world impact
The TPT has published both a public consultation targeting the underwriting activities of the insurance sector, as well as a sectoral deep dive on asset owners, which encompasses insurers’ investment activities as well. We see value in consolidating both the underwriting and investment guidance for insurance companies into one single Insurance Sector Guidance. This would enhance clarity and usability of the Framework for the insurance sector. As such, we are publishing our responses to these consultations as a single entity.
- Insurers should use the full extent of their power to promote the transition, both through investments as well as underwriting.
- Introduce sustainability-linked covenants into all new insurance contracts, whereby provision of insurance would be linked to clients reaching defined sustainability targets.
- Metrics and targets should focus on having real-world impact.
- Insurers must have exclusion or phase-out targets for fossil fuels, or explain why they don’t.