Activities of insurance companies under conditions of sustainable development

Abstract

The relevance of the study is determined by the increasing role of sustainable development in insurance. Insurance companies are constantly adapting their product and investment policies to the conditions of a dynamic external environment, which is changing particularly due to the war and is characterized by increased ESG risks. The purpose of the article is to study the impact of ESG risks on the activities of insurance companies and to develop proposals regarding the further steps of these companies toward sustainable development. Methods. The study uses methods of analysis and synthesis to identify trends in the development of insurance companies in the context of sustainable development; comparative analysis to compare the structure of insurance companies’ investment portfolios and their reporting; graphical analysis to visually present trends in the activities of insurance companies; and logical generalization to formulate practical recommendations for the sustainable development of insurance companies. Results. The product and investment policies of insurance companies were examined in terms of their consideration of sustainable development principles. It was found that insurance companies in Ukraine are actively adapting their insurance products to the realities of war while taking into account many aspects of sustainable development. At the same time, their investment policy remains conservative, as evidenced by the concentration of securities portfolios in domestic government bonds. It was established that the disclosure of information on sustainable development by insurance companies in Ukraine is fragmented and is presented mainly in subsidiaries of foreign insurance groups. Conclusions. It is demonstrated that insurance companies are actively integrating sustainable development principles into their product policy. In investment policy and reporting, such adaptation is observed to a moderate extent. ESG risk reporting is an inevitable prospect for insurance companies, and they should already be studying the nature of these risks, the specific features of their measurement and assessment, and their impact on various aspects of an insurance company’s activities, which constitutes a promising area for future research.