MARCH 16, 2021 08:27 AM (EDT)
AM Best Becomes Signatory to the ESG-Related Principles for Sustainable Insurance (PSI); First CRA to Make This Commitment
Director, Market Development
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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 16, 2021 08:27 AM (EDT)
AM Best became a signatory of the United Nations Environment Programme’s (UNEP) FI Principles for Sustainable Insurance (PSI). AM Best believes the insurance industry plays an important role in supporting sustainable economic and social development. In addition, management of environmental, social and governance (ESG) efforts will strengthen the insurance industry’s contribution to building a resilient, inclusive and sustainable society. AM Best’s PSI membership is a significant step in this direction.
Endorsed by the U.N. Secretary-General, the Principles have led to the largest collaborative initiative between the U.N. and the insurance industry — the PSI Initiative. Over 140 organizations worldwide have adopted the four Principles for Sustainable Insurance, including insurers representing more than 25% of world insurance premium volume and USD 14 trillion in assets under management. The Principles are part of the insurance industry criteria of the Dow Jones Sustainability Indices and FTSE4Good.
“AM Best and its major affiliates are pleased to become a signatory to the U.N.’s Principles for Sustainable Insurance. The Principles ‘serve as a global framework for the insurance industry to address environmental, social and governance risk and opportunities,’” said Arthur Snyder III, Chairman, President & CEO of AM Best Company. “This fits both our focus on insurance and our continued perspective that ESG elements play an important role in the financial strength of an insurance company. We’ve long captured environmental and governance issues in our ratings opinions through catastrophe stress tests, A&E tests and ERM. ESG is a repackaging of these. Through the PSI, we are making a further commitment of disclosure and transparency to forward an ESG agenda,” said Matthew C. Mosher, President & CEO of AM Best Rating Services.
“We are delighted that the world’s first credit rating agency is also the first credit rating agency to sign the UN’s Principles for Sustainable Insurance (PSI),” said Butch Bacani, who leads the PSI at the UN Environment Programme. “As the largest credit rating agency specializing in the insurance industry, this is a clear and strong signal from AM Best that sustainability matters in the insurance business, that sustainability counts. In the final analysis, the bottom line is sustainability.”
To learn more about AM Best’s involvement with ESG, please visit Environmental, Social & Governance (ESG).
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.