More sustainable insurance companies

The topic of sustainability is inescapable for the insurance market, which has traditionally been called upon to insure and cover damage caused by weather events. The increase in the frequency of these events and social and demographic changes suggest further demands on the insurance system as a driver of transition.

For some years now, the Insurance Market Observatory (INSURET) has been monitoring profiles on the topic of sustainability from catastrophes to inclusive language. The research, presented on 14 April, highlights an articulated regulatory development with some revisions with a view to simplification. 

However, these create discontinuities for the sector. One example is greenhushing (the downplaying of companies' environmental initiatives in order to avoid investigation or criticism) perpetrated for fear of accusations of greenwashing (an advertising strategy in which a company communicates a sustainability policy but does not implement real change). 

"INSURET's research also highlighted the impact of the Corporate Sustainability Due Diligence Directive (CSDD) on the insurance industry, as sustainability principles, ESG factors, environmental and workplace protection, and respect for human rights will be the focus of companies' employee and value chain management policies", emphasised Patrizia Contaldo, research unit director at INSURET. From the event also emerged stimuli for the industry regarding clarity and inclusiveness in the language of insurance contracts, as required by the Supervisory Authority.