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Survey Report

TCFD: How are UK and European insurers faring?

Willis Towers Watson TCFD Pulse Survey – Volume 2

Insurance Consulting and Technology
Climate and Resilience Hub|Climate Risk and Resilience|Insurer Solutions

By Adhiraj Maitra | October 26, 2021

In the second of our ongoing series of surveys looking at companies’ readiness to make climate risk disclosures under the Task Force on Climate-related Financial Disclosures (TCFD) framework, we turned the focus on insurers – who are increasingly in the front line of regulatory scrutiny on climate issues.

Building on our long-standing survey and benchmarking expertise in areas such as executive compensation, rewards and benefits, the Climate and Resilience Hub is working closely with corporates, financial institutions, regulators and other stakeholders around the world to provide practical insights into a rapidly evolving policy landscape and emerging practice on climate-related issues.

As part of this, the TCFD Pulse Survey seeks to complement existing initiatives examining the status of disclosures by understanding companies’ readiness and intentions to report on TCFD. This second edition focused on the insurance industry and was conducted online during the second quarter of 2021.

Participants included companies in the UK and continental Europe, including several members of the London Market Association and the Association for Financial Mutuals. Sixteen percent of respondents came from listed companies; 84% unlisted. The gross written premiums of the companies range from under £100 million (32% of sample) to over £1 billion (26% of sample). Companies that participated received a more detailed report allowing benchmarking of responses.

Survey highlights

So how are insurers doing? Some of the most notable findings from responses to the survey from a range of UK and European insurers, from mutuals to Lloyd’s syndicates, include:

A large majority of insurers have not advanced far or at all in preparing for TCFD. Larger insurers, unsurprisingly, tend to be among those that have already disclosed or are close to doing so.

Companies are adapting to the need to treat climate change as a strategic issue.

However, insurers are focusing most of their attention on the impact of climate on the asset side of the balance sheet to the detriment of a more integrated risk management approach.

Common challenges cited are consistent with our previous survey.

Download the full report to delve into the survey results further and explore the survey highlights in more detail.

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TCFD: How are UK and European insurers faring? PDF 1.4 MB
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Director and Global Head of ESG and Climate Change, Insurance Consulting and Technology

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