Moody’s launches new ESG underwriting solution

Moody’s has today launched a new ESG insurance underwriting solution for P/C insurers, borne out of a collaboration with global specialty re/insurer, Chaucer Group.

The new solution combines data on public and private companies with a flexible and transparent ESG assessment framework developed with Chaucer to generate ESG indicators and scores that allow insurers to build their own view of ESG risk.

Analytics derived from these scores and indicators help insurers monitor performance and trends, benchmarked against companies’ own ESG targets. These insights are then incorporated alongside other key factors such as dynamics between the ESG factors, and financial risk metrics, such as claims frequency and loss ratios.

“As insurers are seeking to measure the ESG impact of their portfolio, alongside the assessment of traditional insurance risks, this new offering is a great example of how our integrated risk-assessment strategy helps meet our customers’ needs,” said Colin Holmes, general manager of insurance at Moody’s Analytics.

Mike Steel, general manager of RMS, a Moody’s Analytics company, added: “We designed Moody’s ESG Insurance Underwriting Solution, with the support of Chaucer Group, to help re/insurers operationalise the way they measure ESG risk at the point of underwriting. We can do so through the combination of data, technology and industry knowledge that we now have at our disposal following the Moody’s acquisition. By bringing these capabilities together, we are helping underwriters and portfolio managers transform ESG data into new insights on ESG risks and opportunities.”

John Fowle, CEO, Chaucer Group, commented: “Over the last 12 months we have collaborated with Moody’s to support them in the development of Moody’s ESG Insurance Underwriting Solution by providing expertise in underwriting and risk management. The re/insurance industry has a pivotal role to play in helping corporates make the transition to become more sustainable. This isn’t going to happen overnight but by helping clients identify areas that are in need of improvement, we can help them implement incremental changes that will pay dividends in the long-term.”

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