Insurer Launches D&O Benefit for Firms with “Superior ESG Frameworks”
Insurance broker and risk advisor Marsh announced the launch of a new directors and officers liability (D&O) insurance initiative that will recognize US-based clients with superior ESG frameworks. Under the initiative, participating Marsh clients will engage with select international law firms to independently review, evaluate, and, in some cases, bolster their ESG frameworks. Subject to underwriting, Marsh clients will then be considered for preferred D&O policy terms and conditions on ESG-related exposures – such as climate change disclosures and representations – from four participating D&O carriers: American International Group Inc.; Berkshire Hathaway Specialty Insurance; Sompo International; and Zurich North America. Marsh says the move comes amid an uptick in ESG-related stakeholder activism and litigation, as well as an evolving global regulatory environment. It also demonstrates how investing in robust ESG initiatives can positively impact organizations’ bottom lines. “Our clients have endured one of the most challenging D&O markets in decades, and the risk landscape is only intensifying, especially as it relates to ESG issues like climate change and diversity,” said Maureen Gorman, a Managing Director in Marsh’s US FINPRO Practice. “As clients continue to invest in ESG initiatives, it is right that they be recognized as a better risk by underwriters. By working with these select law firms, we are ensuring clients have access to leading independent ESG expertise that can help validate and elevate their ESG efforts, becoming eligible for more favorable coverage.”