Our Business

As a global (re)insurer, we provide services and insurance coverages that allow our clients to rebuild after major losses and improve their resilience; we integrate ESG considerations into our underwriting to reduce risk and take advantage of opportunities for the benefit of our stakeholders.

Climate Risk and Climate Change Management

Our Enterprise Risk Management team integrates ESG performance, including climate change, into our Risk Register and extends that analysis to specific climate-related business risk evaluations in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). See our TCFD Report, where we discuss climate risks and opportunities applicable to our business across the short, medium and long term.

Our Approach to Thermal Coal

We take a pragmatic underwriting approach to identify and assess climate risks in the thermal coal industry. Through our Thermal Coal Policy, we screen coal accounts against defined ESG criteria and escalate accounts, as necessary. The chart on the right shows the outcome of our 2021 Escalated Thermal Coal Submissions.

2021 Escalated Thermal Coal Submissions

Since implementation of our Thermal Coal Policy, and even earlier in some cases, we have decreased our thermal coal accounts for various reasons including:

  • Submission had no climate-related transition plan.
  • Insured was benefiting from deforestation.

These escalations represent our 2021 worldwide coal escalations, excluding the U.S. Our U.S. underwriting groups phased out of the majority of coal accounts by the end of 2021.

Access to Finance and Social Product Development

We offer a range of products and customer-oriented solutions that help to build safer, stronger and more inclusive communities. Additional information on socially responsible products can be found on page 10 of our Sustainability Report.

  • Through our Mortgage Insurance (MI) products, we enable more families to purchase homes and accumulate wealth. In 2021, 341,000 families in the U.S. were able to afford a home with Arch MI, 28% of which were low-income buyers.

Systemic Risk Management/Corporate Governance

  • Risk Management responsibilities are delegated across our organization through a “Three Lines of Defense” approach to risk governance. See the table below for details.
  • Our Board and its committees regularly review and are responsible for our long-term business strategy and work with our management team to define our strategic objectives. See the workflow of our Board’s oversight of key sustainability risks based on the respective committees’ expertise in our Sustainability Report.

Three Lines of Defense


First Line

These are our people on the front lines — such as our underwriters, pricing actuaries and investment professionals. They’re managing risk, complying with regulations and standards, and carrying out our risk control processes daily.


Second Line

These roles are responsible for oversight and challenge of the front line. They develop and implement risk management processes policies and procedures.


Third Line

Their role is to independently assess and report on the work of the management lines of defense.

Key Controls

  • Underwriting guidelines.
  • Business segment reviews.
  • Peer reviews and quality control.
  • Pricing models.
  • Reinsurance purchases.
  • Natural catastrophe modeling and assessment.
  • Predictive analytics.
  • Investment guidelines.
  • Customer vetting.
  • IT Access Controls and cybersecurity.
  • Risk Management Board Reporting.
  • Aggregate exposure measurement and monitoring.
  • Risk Assessments and Control Mapping.
  • Own Risk and Solvency Assessment.
  • Capital modeling and forecasting.
  • Operational Risk Committee.
  • Regulatory issues reporting.
  • Third-party service provider approval and monitoring
  • Board Underwriting Oversight Committee.
  • Board Audit Committee.
  • Board Finance, Investment and Risk Committee.
  • Board Nominating and Governance Committee.
  • Board annual approval of risk appetite, policies and assessment.
  • Compensation plan.
  • Internal Audit Enterprise Reviews

Select to Explore Each of Our Five Key Impact Areas