Sustainability is becoming a strategic factor in the insurance claims sector, influencing adjudication, product development and vendor selection, according to Crawford & Company's first annual Sustainability Report.
The report drew on a survey of claims leaders from carrier and broker partner organisations globally to assess how sustainability priorities are shaping industry practices and corporate strategies.
Among respondents, 70% said sustainability considerations impact claims adjudication and resolution processes, while 80% reported that sustainability affects decisions about the insurance products and services they develop. Seventy-seven per cent (77%) indicated that sustainability is explicitly included in their company’s corporate strategy, vision, or values, and 76% said it plays a role in selecting partners or vendors. These findings suggest that sustainability is no longer a peripheral concern but increasingly embedded in core operational and commercial decision-making.
Regional differences were observed. UK and global leaders placed greater emphasis on sustainability than US peers, both for customers (77% versus 63%) and employees (100% versus 81%). Half of US claims leaders reported that sustainability does not influence their risk selection process, compared with just 10% of UK and global leaders. These differences reflect both regulatory environments and customer expectations, with European insurers and brokers facing increasing scrutiny from regulators and clients regarding environmental and social governance (ESG) practices.
Climate impacts, including more frequent and severe weather events, were identified as a key driver of sustainable practices. Restoration over replacement is increasingly prioritised in claims handling, with insurers building in resilience to future climate-related risks. For instance, claims executives are focusing on sustainable repair techniques, energy-efficient materials, and approaches that reduce overall environmental impact, while also maintaining cost-effectiveness and policyholder satisfaction.
Andrew Bart, CEO of Crawford International Operations, said insurers now view sustainability as an essential component of strategy, driven by climate-related claims, talent considerations, and client expectations. He noted that over the past four to five years, sustainability has moved from a “nice-to-have” to a core factor in claims and underwriting decisions.
The report highlighted that insurers are embedding sustainability into claims handling, product development, and operational decisions, reflecting both regulatory and customer expectations, while addressing long-term risk exposure from climate change and other emerging factors.
This growing emphasis on sustainability is shaping how insurers assess risk, structure policies, and manage claims, indicating that environmental and social considerations will increasingly influence the direction of the insurance industry, the report said.
