Compliance is no longer the benchmark for good leadership in UK insurance. As stakeholder expectations shift and public trust remains fragile, firms are under pressure to show how they serve not just customers, but society.
“There’s a broader mandate in the insurance industry,” said Jenny Herrera (pictured), CEO of the Good Business Charter. “How are you behaving towards your colleagues, your customers, your suppliers? How are you behaving towards society... and then, of course, the planet?”
Culture is often cited as a boardroom priority, but in practice it’s difficult to shape without deliberate effort. Herrera argues that it starts with people, not principles.
“When employees feel truly empowered and supported, then you are building this culture where people feel they can share ideas,” she said. That’s especially critical in a risk-averse sector like insurance, where innovation and adaptability rely on internal trust.
She points to practical structures, rather than slogans, as the real drivers of cultural change. These include suggestion schemes with visible feedback loops and employee forums that elevate diverse voices, not just the most confident.
“Some are shy to speak up but may have brilliant ideas,” she said. “It’s about making sure that everyone feels empowered and supported.”
Leadership visibility matters too. Herrera recommends having a non-executive director on the board responsible for the employee agenda. “From the bottom up, people feel heard. From the top down, someone champions people.”
The payoff is tangible. Strong internal culture supports better retention, attracts values-driven talent, and helps organisations embrace tools like AI more effectively. “There’s more trust, so people are more able to respond to the changes that come down the track.”
Compliance remains a dominant force in insurance governance. But some leaders are pushing for a shift, from risk avoidance to long-term value creation.
“Growth has to be sustainable,” said Herrera. “It’s about innovation, and how you’re developing your people, your human capital.”
She argues that responsibility should be embedded across teams, not siloed in ESG functions. That alignment, she said, can sharpen how insurers communicate values to customers.
Some firms are exploring local partnerships to connect operations with social impact. Aviva, for example, is working with the University of York on social mobility initiatives. But clarity remains a challenge.
“Most people aren't going to read those annual reports,” said Herrera. “Whereas something clearer – ‘This is what we stand for’ – is more likely to be read, and can inspire others.”
Despite increased focus on ESG and sustainability, many insurers are struggling to turn intent into action. Bandwidth remains a problem.
“There’s so much regulation and so many client demands that they can’t put on the back burner,” said Herrera. “The risk is that this other stuff – the strategic, longer-term thinking – gets sidelined.”
The arrival of the EU’s Corporate Sustainability Reporting Directive has added reporting and assurance pressure for many firms. “Sustainability managers are now just worrying about disclosure rather than what new projects their company could take on board,” she said. “That is a massive challenge.”
In many firms, responsibility for ESG or sustainability rests with a single individual, making progress vulnerable to staff turnover or shifting priorities.
Herrera recommends forming cross-departmental responsible business committees that meet quarterly, with board-level oversight. “Having someone on the board chairing it embeds it,” she said. “It helps it sit at the heart of the organisation.”
Efforts to rebuild office culture are creating fresh tensions. Some insurers are calling employees back full-time, despite hybrid flexibility being a key retention factor.
“It can be imposed, and that's difficult,” said Herrera. “Elsewhere, that flexibility is offered, and with it being a challenge anyway to attract good people, that’s a real factor.”
She sees the case for balance. “It’s difficult to build culture when everyone is mostly working from home.”
Beyond the workplace, Herrera believes insurers have a broader opportunity to reposition themselves, not just as risk managers, but as values-led businesses.
“Not many industries are doing this well,” she said. “But insurance is well placed to show the whole package and what it means to be a responsible business.”
That message, she suggests, could resonate with consumers. “When we think of all the types of insurance we have – car, travel, home – there’s an opportunity to say, ‘Get your insurance with us, and you’re supporting a business that’s doing right by all its stakeholders.’”
Herrera argues the sector doesn’t need to start from scratch. “There’s a framework that would let insurers showcase what they’re doing – clearly, publicly, and with credibility,” she said. “It just needs to be treated as a business priority, not a side message.”
