Ortec Finance: Insurers are increasingly concerned about greenwashing

Ortec Finance: Insurers are increasingly concerned about greenwashing

March 12, 2024

Insurance companies ESG
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Insurers are becoming increasingly concerned about greenwashing as ESG requirements become tougher, a new global study among investment management professionals in Life Insurers, London Markets (re)insurers and investment managers who support insurers, shows.

Nearly half (45%) are very concerned about the current level of greenwashing when it comes to investing, with 53% quite concerned, according to the study from Ortec Finance, the leading global provider of risk and return management solutions for insurers and other financial services companies.

Institutions questioned are planning to increase portfolio allocations to green bonds and specialist climate focused funds over the next two years, with 62% boosting allocations to green bonds and 75% to specialist climate focused funds.

However, they are concerned that the range of investments insurers can access will shrink over the next two years due to increasingly stringent ESG requirements. Around 80% expect a rise in the range of investments becoming unavailable for investment because of ESG requirements, with 9% predicting a dramatic increase.

Only one in five (18%) believe the industry as a whole has very good ESG strategies and programmes currently in place. That rises to 21% when companies were asked about the strategies and programmes their own organisation has in place.

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