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March 4, 2024
Environmental, Social and Governance (ESG) issues are rising to the top of the agenda for corporates, investors, and wider society, and the issues of diversity and inclusion are viewed amongst the ‘social’ considerations.
A lack of diversity in financial services was highlighted as a factor in the 2008 financial crisis. Looking at risk management outcomes, studies that compared the outcomes between diverse and non-diverse Boards following the crisis found that businesses with more diverse and risk-averse Boards had better outcomes. In the insurance sector, the FCA believes that not enough has been done.
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