Property & Casualty Underwriting

P&C insurers, particularly those in the corporate P&C segment, are increasingly incorporating ESG and climate into their underwriting processes.  Assessing ESG-C risk pre-bind, and understanding the ESG-C footprint on their overall insurance portfolio.

The developments are relatively new and strategies have varied considerably between carriers. Some have focused purely on certain lines and sectors (for example, excluding new coal power plant developments), while others have looked to create balanced scorecards to measure ESG-C risks. The scorecards are then used to guide risk selection and pricing as well as providing mechanisms for referral to underwriting committees for risks that fall outside of ESG-C tolerances.

Thinking beyond downside risks

Green infrastructure and renewable energy projects which support the transition from a high carbon to low-carbon economy should present new risks and premium opportunities for P&C carriers. Insurers who are able to adapt their business models for these new risks are most likely to capture these growth opportunities. It requires data on transition risks for sectors and insurers, and then deploying capacity and expertise into those sectors that are likely to benefit from the transition to a low-carbon economy.

Typical Challenges are:

  • Correctly identifying insureds. Gathering information about insured entities held on P&C insurers policy administration systems is often poor, making it difficult to obtain ESG scores on their portfolio
  • Obtaining data on private entities. While an insurer’s investment portfolio is typically made up predominately of listed corporates and sovereigns, their underwriting portfolios are overwhelming composed of private firms. ESG data on private entities is limited.
  • Re-thinking risk appetite. Taking a balanced approach that considers ESG-C risks holistically and does not have ‘red lines’. The approach should allow a continuation of coverage even for companies with poor ESG scores providing they have good transition plans in place.


Moody’s Analytics offers a range of P&C underwriting solutions. These include acting as a single source of public, private and sovereign ESG data, through to transition planning and engagement, enabling insurers to develop a proprietary risk profiling methodology based on their own view of risk. 


Private Insureds
Bridge data gaps by accessing estimated scores for the full universe of public and private companies. Obtain transparent, globally comparable metrics that integrate corporate disclosures, macroeconomic, socioeconomic, climate and spatial data.

Questionnaires to obtain additional information and deep dive.
Moody’s Analytics ESG Indicator
Public Insureds
Comprehensive suite of solutions comprises data, scores and assessments alongside monitoring and, screening. Powered by dual materiality methodology, incorporating counterparty’s impact on climate as well impact of climate on counterparty.

Positive, negative, and normative standards screening (UNGC, SDGs etc.). Detailed ESG data, incorporating 200+ data points.
Moody’s ESG Measures
Scorecards and own view of ESG Risk

Enable building of proprietary scorecards to capture own view of ESG risk, using Moody’s ESG data (as well as third party data).

Enables development of risk appetite that is consistent with insurers own views on risk.

Moody's ESG Insurance Underwriting Solution

Transition planning and engagement

Work closely with insureds and engage on ESG question, by moving beyond point in time ESG scoring and understand insureds long term sustainability plans.

Obtain forward looking ESG-C data on management actions and results to support engagement with insureds.
Learn More About Climate Risk for Insurers

Speak to our team of experts to learn more and discuss how Moody's Analytics can help with your

  • Climate Scenario Analysis
  • Underwriting Strategy 
  • Investment Strategy
  • Risk Strategy
  • Regulatory Reporting and Disclosures