Insiders believe green insurance is important
A significant percentage of insurance business personnel (41.9%) believe that it is important for insurance companies to provide “green” or eco-friendly insurance products or services. Meanwhile, further research from GlobalData revealed that most consumers are willing to pay more for insurance contracts from insurers with strong ethical, sustainable and environmentally friendly commitments.
A poll conducted by GlobalData on the third quarter of 2025 verdict media site found that 41.9% of business executives who received over 100 responses from industry insiders argued that providing green insurance products and services was extremely important, while an additional 16.2% viewed it as moderately important. The challenges posed by climate change have led to the emergence of green or sustainable insurance covering products and practices that integrate environmental, social and governance (ESG) factors into the value chain. Nevertheless, 30.5% of insiders believe they don’t offer green products. This means there is a risk that we will fall behind the curve in developing new products.
Consumers’ perceptions about environmental issues are increasing, and we expect many to see eco-friendly options, including insurance. GlobalData’s 2024 Emerging Trend Insurance Consumer Survey highlights this, compared with 51.3% of respondents playing a role in helping insurers tackle climate change, compared to an additional 20.6% who were unsure. In fact, the survey also reveals that if 59.1% of consumers are willing to pay more for insurance contracts if they know that their company has a strong ethical, sustainable, and environmentally friendly commitment, compared to 34.1% who didn’t want to do so. 29.6% of consumers would be willing to pay up to 5% or more for such policies.
In addition to growing consumer demand, there are additional reasons why insurance companies need to offer green products, such as mitigating risk. Climate change has led to more frequent weather phenomena and natural disasters such as wildfires, floods and tsunamis, leading to higher bills. Insurance companies can provide green products to mitigate climate-related risks. For example, insurance companies can provide energy-efficient homes and automobile discounts, as well as sustainable building materials to mitigate the impact of climate change.
Additionally, governments and regulatory bodies are increasingly implementing regulations requiring companies, including insurance companies, to adopt ESG practices and to adopt disclosures. Finally, insurers who can demonstrate their commitment to the environment will boost brand reputation and increase consumer trust.