Sustainability and Practices of Insurance Companies: Literature Review

Abstract

Abstract: The objective of this paper is to review the literature on the relationship between insurance companies practices and sustainable development, focusing on the Environmental, Social, and Governance (ESG) approach discussed in both developed and developing countries. Insurance companies encounter numerous opportunities and threats related to sustainability, with climate change and environmental pollution standing out as the most significant challenges impacting the insurance industry, particularly the life insurance sector. The paper concludes that insurance companies are prepared to offer sustainable insurance products in the future by committing to environmental and social standards. However, challenges exist regarding adherence to governance principles, particularly due to the predominance of small and medium-sized insurance companies. The current study also underscores the intimate connection between the insurance industry and sustainability factors. They mutually influence each other in an integrative relationship, necessitating the integration of ESG factors into the business strategies of insurance companies.