The U.S. rejoining of the Paris Agreement, due to take effect on 19 February 2021, signals the intent of President Biden’s administration to take a tougher stance on environmental matters. AM Best believes that an increased legislative and regulatory emphasis on climate risk will prompt U.S. (re)insurers to accelerate their environmental, social and governance (ESG) efforts.
Outside the United States – in Europe and Asia Pacific, in particular – (re)insurers have been increasing the integration of ESG factors into their investment and underwriting activities. However, there has been a perception that U.S. (re)insurers have lagged behind their global counterparts on this matter.
A new Best’s Commentary, “Rejoining Paris Agreement Spurs US (Re)insurers’ ESG Adoption”, sets out some of the potential short-to-medium term impacts on the (re)insurance industry as a result of the United States rejoining the Paris Agreement, including reputational challenges, as well as the threats and opportunities presented by the transition from a high to low-carbon economy.
To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=305979.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing. in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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