Insurers in Asia Pacific are struggling to implement their net-zero plans for their investment portfolios due to a lack of reliable data, suggests recently published research.
A survey of 43 Apac-based insurers by asset manager abrdn and Hong Long-based consultant Quinlan & Associates found that exactly half (50%) of Apac insurers have yet to integrate net-zero into their investment strategies, citing data quality and investment management as significant roadblocks.
Insurers fare slightly better in implementing broader ESG factors into their investment strategy, with 70% either completing this process or in the middle of doing so.
However, this figure will likely increase, given that an average of 62% of Apac insurers believe local ESG regulations will become stricter in the next three years. This sentiment was exceptionally high in Australia (77%), Malaysia (72%) and Hong Kong (69%).
Given the struggles over implementation, the survey unsurprisingly shows a “strong demand” among insurers to outsource their ESG integration efforts and hedging strategies to external partners.
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