How the finance sector is driving change: 3 concrete examples of leadership.

It's easy to blame institutions when things go wrong, but all too often it's a few bad apples that spoil things. Is capitalism bad per se? Or is it a system that can be made to look bad by people who use it with selfish motivations?

That's a big discussion. But, the potential good of capitalism is beginning to shine through. Murmurings of regenerative capitalism are growing, as more and more people see the potential of market based solutions designed to deliver more shared value.

Here's three recent examples from the insurance industry.

First, the idea of parametric insurance products that can protect local economies whilst simultaneously restoring natural capital. In this article, Mark Tercek, an ex-banker who is now the President and CEO of The Nature Conservancy explains how they have developed the science and models to apply these innovative products to coastal economies.

I had to look up what parametric insurance was all about, and it's a well established model that seems to have good potential to be applied in new, innovative ways that can serve economic, social and environmental interests simultaneously. Perfect!

Secondly, Swiss Re. Swiss Re claims to be the first reinsurer to base its entire portfolio on ethical principles. Both its internal and external money managers will be expected to use ESG indices compiled by MSCI, a provider of research, benchmarks and tools for institutional investors.

This article explains the economic rationale for Swiss Re's pioneering move, and how it deliberated for 18 months (presumably doing all the research and due diligence, rather than simply cogitating) before making this decision. Ultimately, the shift in investment philosophy is designed to make Swiss Re more resilient and protect investors from market volatility.

Finally, there is the decision by Axa - one of Europe's biggest insurance businesses - to end insurance for coal-intensive businesses. This applies to businesses with half or more of their income coming from mining or coal-burning operations.

Other insurance companies are being urged to follow Axa's example, which is based on doing what's necessary to achieve the Paris Agreement climate goals. Ultimately, without access to insurance, the coal industry will die. Whether, or how soon, that happens remains to be seen. But it's a step in the right direction.

What other leadership examples are out there? If you know of some, please share in the comments below so we can spread the word share all the good ideas.