Rationalization and alignment of ESG reporting, standards, and data

The integration of ESG principles in the insurance sector is right before our eyes, with insurers employing an increasing number of staff focused on this type of reporting.

To promote collaboration with management, ESG committees are being formed, including board members. This clearly indicates that ESG principles are deeply integrated into business strategies and decision-making processes.

Most insurers have already adopted decarbonization strategies with specific goals aimed at reducing this type of risk. This is a significant step forward and confirms that ESG principles are well-established in the operations of insurers. The remaining insurers, those who have just started developing such strategies, report positive experiences and believe their companies are well-prepared for future challenges.

A proactive approach to ESG has led most insurers to invest in the development of this segment at the strategic, operational, and business levels for years. Despite the strategic, operational, and business investments, challenges in this area are inevitable, and the consequences are severe. Three primary challenges to consider in the future are:

1. Excessive paperwork in reporting
2. Data availability and limitations
3. Regulatory fragmentation, with location-specific requirements

Environmental sustainability and corporate social responsibility are the foundation for the future, and implementing ESG principles and establishing sustainable business practices is key to achieving good results, both in insurance and reinsurance.