Half of APAC insurers not yet started on net-zero

A recent insurance landscape report for the APAC region found that half of Asian insurers surveyed have not yet started on net-zero integration. Additionally, three in 10 insurers said that they have not yet integrated environmental, social and governance strategies at all.

Despite these ESG figures, the study found that 62% of APAC insurers believe that local ESG regulations will become stricter in the next three years, with the expectations from Australia, Malaysia, and Hong Kong listed as the highest.

The report, titled APAC Insurance Investment Landscape, comes from global asset manager abrdn and strategy consultancy Quinlan & Associates. It explores how insurers are facing various developments from the industry, from changing regulations through the adoption of IFRS 17, ESG efforts (or lack thereof), and the rise of investment-linked policies (ILPs).

The report surveyed 56 senior executives across 43 insurance companies in eight APAC markets, including Hong Kong, Singapore, Mainland China, Thailand, Taiwan, Malaysia, Australia, and South Korea.

Regulatory adoption a high priority

The findings of the report indicate that nine out of 10 surveyed consider the adoption of IFRS 17 to be amongst their highest priorities. Risk-based capital (RBC) regulation adoption is also considered by seven out of 10 to be a high priority.