Next Article in Journal
Postural Risk in Manual Planting Operations of Poplar: Two Options Compared
Next Article in Special Issue
The Determinants of ESG Rating in the Financial Industry: The Same Old Story or a Different Tale?
Previous Article in Journal
Do Multilateral Development Bank Trust Funds Allocate Climate Finance Efficiently?
Previous Article in Special Issue
Mapping Research on Sustainable Supply-Chain Management
Open AccessArticle

Sustainability Practices and Stability in the Insurance Industry

1
Department of Business Administration, University of Verona, 37129 Verona, Italy
2
Department of Economics, Business, Mathematics and Statistics, University of Trieste, 34123 Trieste, Italy
3
Department of Economics and Statistics, University of Udine, 33100 Udine, Italy
4
Department of Accounting Finance and Management, University of Essex, Colchester CO4 3SQ, UK
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(14), 5530; https://doi.org/10.3390/su12145530
Received: 3 June 2020 / Revised: 29 June 2020 / Accepted: 3 July 2020 / Published: 8 July 2020
While the concept of sustainability is receiving growing attention from investors, firms, regulators, and researchers, little is known about its role in the insurance industry. As institutional investors and risk-absorbers from businesses and individuals, insurers adopt an operating model that is more inclined to target long-term objectives; they should be among the firms benefiting the most from engaging in sustainable practices. The existing literature provides evidence of the positive impact of sustainability on commercial stability, but this is the first study to examine this relationship for the insurance sector. Focusing on American listed insurers, we found that sustainability, proxied by Environmental, Social and Governance (ESG) scores, enhances the stability of insurers, and that this relationship is driven by environmental and social dimensions. We did not observe a significant contribution from the governance dimension. Finally, we found a stronger association for life insurers. Our results are shown to be robust to endogeneity, enterprise heterogeneity and potential sample selection biases. View Full-Text
Keywords: Environmental Social and Governance (ESG) scores; stability; insurance Environmental Social and Governance (ESG) scores; stability; insurance
Show Figures

Figure 1

MDPI and ACS Style

Chiaramonte, L.; Dreassi, A.; Paltrinieri, A.; Piserà, S. Sustainability Practices and Stability in the Insurance Industry. Sustainability 2020, 12, 5530.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop