The sustainability and moral impact of businesses are typically evaluated using environmental, social, and governance (ESG) criteria. ESG (environmental, social and governance) considerations are becoming more crucial in all areas of economics. Although the concept of sustainability is gaining more and more attention from investors, businesses, authorities and academics, there is little knowledge on how it will affect the insurance industry. Insurance companies combine operating methods that focus on long-term goals from businesses and individuals because they are investors and risk takers. The insurance market is still poorly covered in the literature, despite rising interest from financial authorities and policymakers. Insurance firms that are bigger, more successful, and more financially stable exhibit the highest levels of ESG awareness. The increasing demand for ESG investments, the selection process for ESG investments, risk and strategy considerations for insurers, the impact of ESG factors on product design for two very different long-term insurance products and health and care products as well as ESG disclosure requirements are all topics that will be covered in this article. While the ESG agenda is significant for all businesses, the insurance sector benefits particularly from its application. This article also covers the regulatory trends, objectives, and constraints of the ESG agenda in the insurance industry. In order to reform the finance department, it is necessary to adopt new service delivery models, prioritize insight generation over retrospective reporting, implement better technology, expand data capabilities, and hire new personnel. This places ESG and sustainable finance in the framework of finance transformation. It emphasizes how the financial professionals should lead in the area of ESG and how they ought to handle the most pressing ESG responsibilities right away while also setting clear goals for the long term.