As Earth Day approaches, the world is reminded of our shared environmental, social, and governance interests and the need to invest in a sustainable future for ourselves and generations to come. For the insurance industry, these are everyday realities.

In this month’s Insurance News Analysis, Abbey Compton and I discuss ways insurers continue to cultivate sustainability in a shifting risk landscape. One innovative example is Lemonade Foundation’s new smart contracts solution. It’s intended to scale insurance that helps subsistence farmers, who are often uninsured, mitigate risks linked to climate change like windstorms, freezes, or floods.

Globally, 75% of flood risk remains uninsured even as flood losses increase. The rollout of FEMA’s new National Flood Insurance Program model may be the catalyst to overdue agent conversations about property underinsurance.

The Casualty Actuarial Society is seeking to address historic racial disparities in the industry. They are looking at alternative data sources for underwriters that would help overcome unintended racial bias. Abbey and I discuss the enormous value of such data and its relationship with AI decisions.

We also talk about why work comp claims have remained below pre-pandemic levels and what Berkshire Hathaway’s acquisition of Allegheny Insurance signals for the industry.

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