The study investigates the relationship between the business performance (BP) of listed global insurance companies and their Environmental, Social, and Governance (ESG) scores. Additionally, it sought to understand how Human Capital (HC), a crucial component of Intellectual Capital (IC), shaped this relationship. The researchers employed a modified Data Envelopment Analysis (DEA) technique to evaluate the efficiency scores of 75 life and non-life insurers worldwide from 2018 to 2022, using these scores as a proxy for BP. Ordinary least squares regression was utilized to determine the link between ESG and BP and the role of HC in this association. Furthermore, a multivariate analysis was conducted to categorize insurance companies based on their shared characteristics, ESG scores, and BP. The findings revealed that a low level of social initiatives actually led to better insurance’s BP, while efforts towards environmental sustainability and corporate governance practices did not directly impact the BP of insurers within the scope of this study. Interestingly, a robust HC base, characterized by skilled and knowledgeable employees, was found to amplify the positive effects of good governance practices on the performance of insurance companies. This highlights the importance of investing in HC and fostering a workforce with specialized knowledge and expertise to maximize the benefits of sound governance practices.
