From: Captive International

The biggest risk associated with ESG (environment, social, governance) is ignoring it – companies are increasingly expected to identity, implement and report on ESG and while Europe is leading the way, US companies will have to catch up.

That was one of the themes of a panel discussion at the at the Captive Insurance Companies Association’s (CICA) annual conference, taking place in Tucson this week (March 6-8). The session, called ‘Why are ESG Risks Relevant to Captive Insurers?’ was moderated by Richard Cutcher, Founder and Executive Producer, Global Captive Podcast.

Other panellists included Michael Douglas, Director – Business Development, Aon; Karen Hsi, Program Manager, Fiat Lux Captive Insurance Company, University of California Office of the President; and James Stewart, Representative, Guernsey International Insurance Association.

Opening the debate, Cutcher acknowledged that consumers, shareholders, and regulators are increasingly applying ESG factors to their assessment of a company’s performance and value. He said there can be a degree of scepticism of the relevance of this to captives, but said this is changing. “The real question is what role will captives play?” he said.