US insurers face growing consumer demand for sustainability amid policy shifts, reveals GlobalData

A growing number of US consumers prioritize environmental practices in choosing their insurers, emphasizing the need for sustainability in the sector. Despite potential shifts in federal policies under President-elect Donald Trump, who opposes environmental, social, and governance (ESG) mandates, insurers must adapt to consumer-driven demands for eco-friendly initiatives to remain competitive, enhance customer trust, and build long-term brand loyalty, says GlobalData, a leading data and analytics company.

GlobalData’s 2024 Emerging Trends Insurance Consumer Survey* indicates that 38.4% of the US consumers consider it very important for their insurer to engage in environmentally friendly practices, with an additional 22.1% viewing it as extremely important. In contrast, only 17.1% of respondents deemed such practices unimportant.

Trump has previously criticized ESG principles, describing them as a hindrance to the economic growth and innovation. His administration is expected to focus on deregulation, emphasizing traditional energy sectors like oil and gas, while reducing federal oversight on corporate environmental and social practices.

Charlie Hutcherson, Associate Insurance Analyst at GlobalData, comments: “Neglecting ESG could alienate consumers who increasingly value sustainability. While government pressure to prioritize ESG may ease under the Trump administration, consumer demand remains strong. Insurers that commit to sustainable practices will not only foster trust but also differentiate themselves in a competitive market. Failing to adapt to these expectations risks eroding customer loyalty and brand reputation in the long term.”

Global trends in renewable energy and sustainability continue to shape the insurance sector globally, with many insurers distancing themselves from carbon-intensive industries. As a result, US insurers are expected to align with this movement by adopting net-zero strategies, reducing engagement with carbon-heavy sectors, and investing in sustainable economic initiatives.

With nearly 61% of the surveyed consumers rating ESG practices as at least “very important,” insurers have a clear incentive to prioritize sustainability. By doing so, they can enhance their brand image, attract environmentally conscious customers, and build long-term resilience, regardless of the broader political landscape.

Hutcherson concludes: “ESG is no longer just about meeting regulatory requirements; it is about reflecting the values of the modern consumer. Insurers that actively demonstrate their commitment to environmental responsibility will be better positioned to secure loyalty and remain resilient in the face of evolving market expectations.”

*GlobalData’s Emerging Trends Insurance Consumer Survey featured a panel of consumers aged 18+, with 5,520 respondents spread across 11 countries in different regions to identify global trends. There was a minimum of 500 respondents per country. It is GlobalData’s first-ever dedicated multi-market insurance consumer survey.