Who is the first person to receive a distressed phone call when a business is inundated with floodwater or razed to the ground by a wildfire? The insurance broker or agent. Now, I believe that brokers have a critical role to play in building and supporting more climate-resilient communities. If brokers can help their clients better manage environmental risks – a crucial pillar in ESG – they can better fulfill their advisory role.

Just looking at climate change in isolation is problematic because it has enormous implications for the S pillar in ESG. Too often, it is minority communities who are most in harm’s way and most underinsured. Climate change and environmental risks impact every single person on this planet – not just the insurance-buying community. Brokers must be mindful of that, and proactive in how they help to build resilience – through insurance coverage and risk mitigation – in their communities.

That point ties into the wider themes of diversity, equity, and inclusion (DE&I) – arguably the focal point of the S pillar, and another area of ​​great importance for insurance brokers and agents. At Insurance Business we talk to insurance leaders on a weekly basis about the significance of DE&I and the enormous benefits it can bring to a business. The general conclusion is that insurance brokerages and agencies with diverse teams generate the best results because they’re able to attract and retain a more diverse clientele. It’s a no-brainer if you ask me.

As for governance – the G pillar – this is nothing new for those in the insurance industry. Brokers, agents, and insurance carriers have developed robust governance structures over the years, reacting to evolutions in regulation and compliance, and increasing using tools like data and analytics to understand the impact of