Chief executive says the ’the industry needs to work together’

Brokers and managing general agents (MGAs) currently lack clarity over what type of environmental, social and governance (ESG) data they should be capturing from customers.

That was according to Managing General Agents Association (MGAA) chief executive Mike Keating, who felt the issue meant they may struggle to get the data they need to share with insurers.

Speaking about the individual aspects of ESG, Keating told Insurance Times that while the social and governance piece “still needs a bit of fleshing out”, there had been “a lot of work around” the environmental aspect.

However, he added: “The industry needs to work together because no one’s quite sure, as you look at the E piece, what data brokers and MGAs should be looking to capture and share with insurers.

“Insurers probably need to lead that.

“And how can a broker go to a small trader and say ‘I need some ESG data’ – the customer might say ‘what do you mean, what are you talking about?’”

Work to do 

It came after GlobalData warned in April 2023 that UK brokers were struggling to identify insurers leading the line in ESG credentials.

According to its 2023 UK broker insurance survey, which sought feedback from 250 respondents in Q1 2023, a total of 73.7% said they did not know which insurers were leading the way and 1.7% said “none” were.

However, Keating felt brokers and MGAs were working with insurers over ESG and said “a lot of work has been undertaken” in the industry.

“But, there is a lot of work, a lot of alignment and a lot of collaborations [needed] for where the industry wants to get to,” he added.

Asked how insurers can lead the way, Keating said: “First and foremost, it’s going to be communication.

”So, [that is] transparency, engagement through all the value chain and being consistent.

“That’s the start point because if the message comes across consistent, then you’re getting consistency in the value chain.”