Over two-fifths of insurance industry professionals consider it vital for insurers to offer “green” or environmentally friendly insurance products, as consumer demand for ethical and sustainable offerings continues to rise. With growing awareness of climate change and environmental, social, and governance (ESG) concerns, insurers that align with these values stand to enhance customer loyalty, manage risks more effectively, and bolster long-term competitiveness in the market, reveals GlobalData, a leading data and analytics company.
According to a poll* conducted by GlobalData on Verdict Media sites in Q3 2025, which garnered over 100 responses from industry insiders, 41.9% of business executives cited that it was very important to offer green insurance products or services, while a further 16.2% viewed it as moderately important. In contrast, 30.5% of insiders view offering green products as unessential, meaning they risk falling behind the curve of the development of new products.
Beatriz Benito, Lead Insurance Analyst, GlobalData, comments: “The challenges posed by climate change have led to the emergence of green or sustainable insurance, encompassing products and practices that integrate ESG factors into the value chain. Equally, consumer awareness about environmental issues has increased, with many now expecting to see eco-friendly options, including in insurance.”
Findings from GlobalData’s 2024 Emerging Trends Insurance Consumer Survey** highlight this, with 51.3% of respondents citing insurance companies have a role to play in tackling climate change, compared to the 28.1% who did not think so, while a further 20.6% were unsure. The survey also reveals that 59.1% of consumers would be willing to pay more for an insurance policy if they knew the company had strong ethical, sustainable, and environmentally friendly commitments, compared to the 34.1% who were unwilling to do so. 29.6% of consumers would be willing to pay up to 5% more for such a policy.
Benito continues: “Besides growing consumer demand, there are further reasons why insurers should offer green products, such as to mitigate risks. Climate change is leading to more frequent weather events and natural disasters such as wildfires, floods, and tsunamis, which are resulting in higher claims. Insurers can offer green products in a bid to mitigate climate-related risks.”
For instance, insurers can offer discounts for energy-efficient homes and cars as well as sustainable building materials to mitigate the impact of climate change.
Benito concludes: “Governments and regulatory bodies are increasingly implementing regulations that require businesses—including insurers—to adopt ESG practices, as well as making disclosures. Ultimately, insurers which can demonstrate environmental commitments will enhance their brand reputation and improve trust among consumers, which will in turn help them to position themselves as forward-thinking and responsible organizations while also potentially enabling them to charge more for their products.”
*GlobalData’s poll was conducted on Verdict Media sites in Q3 2025 and gathered over 100 responses from industry insiders.
**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.
About GlobalData
4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.
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