LV= falls short in ESG ratings

GlobalDataFinancialServices

Thu, Apr 17, 2025, 8:03 AM 2 min read

LV= occupies the lowest position among the top ten personal lines insurers with respect to supporting environmental, social, and governance (ESG) initiatives, a GlobalData survey has revealed. Furthermore, The Good Shopping Guide's assessment of ethical insurance ratings, which evaluates insurers based on criteria ranging from climate policy to corporate behaviour, indicates that LV= has received a low score in this domain.

GlobalData’s 2024 UK Insurance Consumer Survey has found that among the leading insurers, Barclays leads in terms of ESG support with 12.0% of promoters. This positions Barclays as a leader in consumer perception regarding its commitment to sustainable and responsible practices within the non-life insurance sector. On the other hand, LV= ranks at the bottom of this group with only 2.9% of promoters.

Meanwhile, The Good Shopping Guide has recently published its latest Ethical Insurance Ratings, assessing insurers on various criteria, including climate policy and corporate behaviour. In the mainstream insurance market, Aviva and its subsidiaries, Quote Me Happy and General Accident, achieved impressive scores of 92 out of 100. Aviva's commitment to achieving net zero carbon emissions by 2040 and its decision to abstain from political contributions are particularly noteworthy, especially in an industry often criticised for its environmental impact and political entanglements. This commitment is further validated by GlobalData’s survey, which ranks Aviva third in terms of the share of promoters for supporting ESG initiatives.

In contrast, several well-known insurers received low ratings. LV=, which operates as a personal lines brand under Allianz, and Allianz itself found themselves at the bottom of the rankings, each earning a mere 18 out of 100. These companies faced criticism for their lack of transparency in reporting, their failure to divest from harmful industries such as fossil fuels and arms, and their absence of credible environmental or social governance policies.

Supporting ESG causes is increasingly vital for insurers, as it not only reflects a commitment to ethical practices but also addresses the growing concerns of consumers and investors regarding sustainability and social responsibility. Insurers that prioritise ESG factors can enhance their reputation, build consumer trust, and attract a more conscientious customer base. Moreover, as climate change and social issues become more pressing, regulatory bodies are likely to impose stricter requirements on companies to disclose their ESG practices. Insurers that proactively embrace these principles may find themselves better positioned to navigate regulatory changes and mitigate risks associated with environmental and social challenges.