Drives of proactive environmental actions of small, medium and large Nordic non-life insurance companies - and insurers as a driving force of actions

Global environmental challenges create risks and opportunities for companies in different sectors. In dealing with those challenges, companies are driven to actions by different forces. Furthermore, some companies lead in their actions while others lag behind. This study presents empirical findings on what drives the actions of Nordic non-life insurance companies. The companies are divided into two case groups based on size and location. The Island group includes small and medium-sized companies operating in Åland, the Faroe Islands and Iceland. The Mainland group includes large companies operating in Denmark, Finland, Norway and Sweden. Eight drivers are identified: four are external, three are internal and one is indirect, caused by pressure on insurers' corporate clients. In the case of Island companies, regulatory pressure imposes action and a lack of such pressure is evident, but the Mainland companies are influenced by a more diverse set of drivers. The study also emphasizes the type of stakeholders insurance companies are in a position to influence, including customers, suppliers and authorities. The results have a theoretical implication, as the body of literature has not covered this subject matter in the context of insurers driving forces behind proactive environmental actions, lack of drivers, and the role of insurers as a driving force of proactive environmental actions of others. A practical implication for the insurance sector includes increased awareness about drivers influencing proactive environmental behavior, knowledge about lack of drivers in the Island companies, knowledge about what stakeholder's insurers are in position to influence. The study suggest that the drivers behind actions of financial companies do not necessarily follow the same pattern as most of the companies of sectors covered in the literature; drivers may therefore be sector-specific and they may also differ within a single industry setting. The institutional environment plays an important role, even in countries with similar characteristics and a similar national institutional context. The findings of this study serve as a reference for new studies, particularly where research gaps are identified, for instance in the case of different types of finance institutions.