Insurers’ climate credentials not part of the client conversation

The specialist insurer has published its third annual broker climate survey, which asked 250 brokers* about their attitudes towards climate issues.

Despite a growing number of broker firms committing to net zero targets, more than three-quarters (77%) of respondents said it was not a broker’s responsibility to inform and educate clients about insurers’ climate positions.

The findings suggest insurers need to do more to support brokers to build their knowledge and confidence about their climate credentials.

Nearly three-quarters of brokers believe reducing their company's climate impact is the right thing to do and two in five (39%) are doing so to reduce costs.

However, most brokers (79%) believe their main responsibility in tackling the climate crisis is reducing their direct impact. A third (32%) also said advising on products and services that support carbon reduction was their responsibility. Just 13% believe advising clients to reduce their direct impact is a broker’s responsibility, although this rises to 27% among national brokers.

The research also found just one in ten said they were more likely to place business with an insurer that has a strong climate position, while even fewer (9%) believed that clients were more likely to do business with an insurer with a clear stance on the environment.

This year’s survey saw an increase in the number of brokers setting a net zero target, rising from 11% to 17% overall, with more national brokers (51%) setting a target than regional (12%) or provincial (6%) brokers.

More firms are taking steps to reduce their climate impacts, with a noticeable shift in brokers thinking beyond their direct impacts to broader environmental concerns.

Reducing energy consumption (44%) and minimising business travel (33%) remained the most popular measures, but this year’s survey saw an increasing number of brokers raising awareness among employees (33%, up from 30%), appointing an executive with climate responsibilities (22%, up from 16%), planting trees (16%, up from 11%), and carbon offsetting (12%, up from 7% in 2023).

Twice as many brokers (16%, up from 8%) year on year are measuring their carbon footprint, with over half of nationals (51%) stating they are doing so.

Richard Coleman, UK Managing Director, at Ecclesiastical Insurance, said: “The climate crisis is something we clearly all feel strongly about. It is really positive to see that more brokers are taking steps to reduce their direct impacts, and we believe they also  have an opportunity to play a bigger role still in tackling the climate crisis.

“Brokers have the pivotal role in helping clients make informed decisions, and we believe sharing insurers’ climate credentials could be part of that conversation.

“As an insurer committed to making a positive environmental impact, we’re planning to talk to brokers more about our climate approach so they can make more informed choices about whether they expand the climate conversation to their customers.”

Ecclesiastical has produced a series of webinars on its Broker Training Hub to support brokers to develop their carbon reduction plans and set effective targets. Benefact Group, which owns Ecclesiastical, has announced its carbon reduction commitments to reach net zero by 2040.

* 250 Interviews carried out by FWD in March 2024. FWD is an Independent research agency and the only UK agency to have received approval from BIBA.