A majority of brokers are not engaging clients about insurers’ climate credentials, according to recent findings by Ecclesiastical Insurance. This insight stems from the insurer’s third annual broker climate survey, involving 250 brokers.
The study highlights that despite an increasing number of broker firms committing to net zero targets, 77% of brokers do not see it as their responsibility to inform clients about insurers’ climate positions. While nearly three-quarters of brokers feel it is important to lessen their company’s climate impact, and 39% are motivated by cost reductions, 79% believe their primary responsibility is to minimise their direct effect.
A smaller proportion, 32%, feel responsible for advising on products and services that aid carbon reduction, and only 13% see it as their duty to advise clients on reducing their direct environmental impact. However, this perception increases to 27% among national brokers.
The survey also found that only 10% of brokers are more inclined to place business with insurers who have a strong climate stance, and an even smaller percentage (9%) believe clients prioritise an insurer’s environmental position when making decisions.
Notably, the annual poll saw a rise in brokers setting net zero targets, up from 11% to 17% overall. More national brokers (51%) have set these targets compared to regional (12%) or provincial brokers (6%). There is also a growing trend among brokers to address broader environmental issues beyond their direct impacts.
Popular measures include reducing energy consumption (44%) and business travel (33%). Additionally, more brokers are raising employee awareness (33%, up from the previous 30%), appointing climate responsibility executives (22%, up from 16%), engaging in tree planting (16%, up from 11%), and carbon offsetting (12%, up from 7%).
Twice as many brokers (16%, up from 8%), meanwhile, are now measuring their carbon footprint, with over half of national brokers (51%) engaging in this practice.
“The climate crisis is something we clearly all feel strongly about,” Ecclesiastical UK managing director Richard Coleman (pictured) stated. “It is really positive to see that more brokers are taking steps to reduce their direct impacts, and we believe they also have an opportunity to play a bigger role still in tackling the climate crisis.
“Brokers have the pivotal role in helping clients make informed decisions, and we believe sharing insurers’ climate credentials could be part of that conversation.
“As an insurer committed to making a positive environmental impact, we’re planning to talk to brokers more about our climate approach so they can make more informed choices about whether they expand the climate conversation to their customers.”
Ecclesiastical has also introduced a series of webinars on its Broker Training Hub to assist brokers in developing carbon reduction plans and setting effective targets. Benefact Group, Ecclesiastical’s parent company, has pledged to achieve net zero by 2040.
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