Policy and Regulation, Sector Focus

How greenwashing concerns are reshaping corporate liability insurance

Flags with the logo of German insurance giant Allianz flutter in front of the venue where is taking place the company’s annual general meeting in Munich, southern Germany, on May 7, 2014. Allianz said it is “on track” to meeting its full-year targets after a strong first quarter 2014. AFP PHOTO / DPA / ANDREAS GEBERT / GERMANY OUT (Photo by ANDREAS GEBERT / DPA / AFP) (Photo by ANDREAS GEBERT/DPA/AFP via Getty Images)

Potential liabilities from greenwashing allegations are likely to hit board directors first, before affecting environmental insurance policies.

Companies’ exposure to risks related to accusations of greenwashing is driving debate in the insurance market on how to best incorporate this type of liability in the underwriting process.

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