Financial Services Commission Chairman Eun Sung-soo said Tuesday that the emerging environmental, social and governance trend could provide local insurance firms with new business opportunities.

“The insurance segment, which often handles long-term services and investment, is closely related to ESG management, which is aimed at achieving long-term sustainability,” Eun said at an event for the CEOs of local insurance companies in Seoul.

“ESG-driven management could become a new opportunity for the insurance industry,” he added.

He cited the important role of insurance firms in the ESG sector, saying they could help businesses minimize ESG-related risks and could also accelerate the movement as supporters.

“Insurers, for example, can factor in environmentally friendly businesses when determining premiums for companies,” said Eun, pledging to prepare ESG-related filing systems by 2030 and to improve relevant regulations down the road.

Announcing a joint statement at the Tuesday event, chiefs of local insurers vowed that they would make concerted efforts to promote ESG initiatives.

“With paradigm shifts taking place in the business world, companies are required to seek social and environmental values,” said Chung Ji-won, chairman of the General Insurance Association of Korea, pledging that the association would make continuous efforts in the area of ESG.

Also among the participants were Mirae Asset Life Insurance chief Byun Jae-sang, Hanwha Life Insurance CEO Yeo Seung-joo and Kyobo Life Insurance CEO Yoon Yeol-hyeon.

According to the statement, the insurance firms will try to strengthen the social safety net with insurance services, improve management transparency and partake in campaigns to reduce greenhouse gas emissions.

By Kim Young-won (wone0102@heraldcorp.com)