Sustainability and ESG is yet another topic that is overwhelming many organisations within the insurance sector. Knowing where to start and what good looks like in terms of driving towards net-zero from an investment and underwritten business perspective is hard. There was some great advice at the Sustainable Insurance Summit at the end of January 2022. Hopefully, this summary is helpful.
KEY TAKE-AWAYS:
- The convergence and connectivity between E, S and G is essential for all businesses to comprehend.
- Collaboration – within-industry, across-industry, with clients, and alongside trusted partners – is crucial.
- Whilst regulatory guidance is desired, the overriding message was – there is no time to waste – make bold decisions, start reporting today…!
Having recently attended the Sustainable Insurance Summit (hosted by the team at the Better Insurance Network) it was interesting to see similar messages coming from the speakers involved.
“Collaboration is key.”
“There is no time to waste – agree and start your reporting processes today.”
“Regulatory compliance will come – get ahead of it.”
Perhaps unsurprisingly these were consistent themes raised during Gamma LI’s own GeoInsurance series of webinars at the end of 2021.
Now sustainability or ESG policy and practices are not necessarily new initiatives to many businesses.
However, it’s the “full throttle drive” towards the implementation of best practice measures and the reporting of metrics by businesses of all shapes and sizes to help the global economy combat the impacts of global warming and climate change that means business – especially the Insurance sector – needs to sit up and take note.
And to start implementing process and solutions.
Now the beautiful – if freely created using a WordCloud Generator by MonkeyLearn – image accompanying this brief blog was crafted using my notes from the sessions that ran over 2 days.
And whilst my ear may have been drawn to aspects that Gamma LI has a particular focus on – data, collaboration, reporting, process, affordable solutions – it was clear that whilst many big brand insurers have grasped the nettle in the ESG reporting stakes, there are many others – including those big brands – that will invariably struggle to efficiently manage and report on all that they need to in order to satisfy regulatory compliance.
Many of those presenting their thoughts and experiences seemed to believe that the (Insurance) investment side was well understood and that reporting on scope 1, 2 and 3 emissions were relatively straight-forward for all parties to implement.
However, the underwriting side of the business is perceived to be somewhat more challenging.
Why…?
Lack of data, predominantly.
But perhaps there is also the underlying perception that regulatory guidance has been slow and therefore implementing a solution – any solution – would not be an investment well made.
And how can this be resolved…?
Well stronger guidance will come.
There is also the TCFD (taskforce on climate-related financial disclosures) protocols. These provide direction on what should be implemented across businesses of all shapes and sizes in the next 12-months or so.
But the strongest message has to be one of collaboration.
As a solution provider with 20 years of working collaboratively with insurers to solve their process efficiency and reporting challenges – and with a keen sense and understanding of climate-related risks and impacts – we believe that Gamma LI has a strong part to play.
We just need the opportunity – and a brave sole to come and ask us how.
@ 2022 Gammali.co.uk by Jason Day
About Gamma Location Intelligence
Gamma Location Intelligence (Gamma LI) is a cloud hosted solutions provider that integrates software, data and services to help our clients reduce risk through location intelligence. Established in Dublin, Ireland in 1993, and with offices in Manchester, UK and Bilbao Spain, the company has expanded to become a global provider of cloud-native location intelligent systems and services. Gamma LI’s Perilfinder™ risk mapping platform provides property underwriters with access to trusted property-level risk data easily, quickly and accurately.
