Kathmandu. Two out of the world’s five insurance industry professionals have pointed out the need for insurance companies to provide environment-friendly insurance products.
According to GlobalData, 41.9 per cent of more than 100 industry respondents in the third quarter survey of 2025 said green insurance products were much needed. While 16.2 percent said green insurance is moderately important.
Similarly, 30.5 percent of the respondents said that such products are not necessary.
In global data’s 2024 consumer survey, 51.3 percent of respondents believed insurance companies had a role to play in addressing climate change, while 59.1 percent said they would pay more for the policies of companies with strong environmental commitments. Around 29.6 per cent said they would pay up to 5 per cent more.
Offering green insurance products can also help insurers manage climate risks. “Because extreme weather events such as floods and wildfires increase claims,” analysts say.
Examples include the use of discounted or sustainable construction materials for energy-adapted homes and cars. With increasing regulatory pressure, governments are demanding ESG compliance and disclosure. Insurance companies with credible environmental practices will be able to strengthen their reputation, build trust with customers, and justify higher premiums.
