Research from GRiD, the industry body for the group risk sector, shows that 59% of employers report that supporting staff health and wellbeing has directly helped them meet the "social" element of ESG (Environmental, Social, and Governance) policies.
For insurers, this highlights the growing role of employee benefits and group risk products in helping clients achieve their ESG objectives—a trend that is reshaping both product design and provider selection in the insurance market.
ESG targets have become central to corporate strategy and reporting worldwide. These standards require organisations to demonstrate responsible practices across three pillars:
Environmental: Reducing carbon footprint, managing resource use, and addressing climate risk.
Social: Promoting employee wellbeing, diversity, equity and inclusion, community engagement, and fair labour practices.
Governance: Ensuring ethical leadership, transparent reporting, and regulatory compliance.
Increasingly, investors, regulators, and stakeholders are holding companies accountable for their ESG performance. In the insurance sector, this has translated into both internal commitments - such as sustainable underwriting and investment - and external offerings that help clients meet their own ESG targets.
Among the employers surveyed by GRiD, 55% said the policies they selected ensure equity across employees, while 40% extend benefits to family members. These findings underline the importance of inclusive group risk schemes, which provide financial protection and access to services such as Employee Assistance Programmes (EAPs), mental health support, and rehabilitation. Such offerings are increasingly recognised as tools for insurers to help clients meet their ESG commitments.
Katharine Moxham, spokesperson for GRiD, noted that ESG is not only a regulatory or compliance consideration for businesses but also a factor influencing the choice of insurance and benefit providers. Research showed 63% of employers prioritise working with providers with a strong ESG approach, while 70% reported that their staff also expect benefit partners to demonstrate a clear ESG commitment. This presents a strategic opportunity for insurers and employee benefits consultants to align their products and services with ESG priorities.
Group risk policies, she added, are a natural fit for ESG goals because they are affordable, scalable, and can cover all staff, providing both financial protection and wellbeing support. Whether ESG commitments drive the introduction of wellbeing benefits or existing policies help fulfil ESG targets, the impact is clear: inclusive employee protection not only supports staff but also strengthens the organisation’s ESG credentials.
Insurers are increasingly embedding ESG criteria into their own operations and product offerings. This includes:
Developing group risk and employee benefit products that support diversity, equity, and inclusion.
Providing access to mental health, rehabilitation, and wellbeing resources as part of group policies.
Offering transparent reporting and data to help clients evidence progress against ESG metrics.
Supporting clients with training, regulatory updates, and industry insights on ESG best practices.
GRiD is offering training on how group risk can be leveraged to advance ESG objectives, alongside other member resources such as regulatory updates, claims data, and industry insights. This demonstrates how insurers can play a pivotal role in helping organisations meet social ESG targets while delivering tangible benefits to employees.
