target audience: TECH BUYER Publication date: Oct 2022 - Document type: IDC PeerScape - Doc Document number: # US47802822
IDC PeerScape: Sustainable Insurance Part 1 — Practices to Enhance Vision and Engagement
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Abstract
The keys to a more sustainable world are technology and innovation, which is why the purpose of this IDC PeerScape for sustainability insurance is to shed some light on which technologies might support insurance organizations infusing ESG principles into their business growth strategies and their operational models. This IDC PeerScape study, the first in a two-part series, will outline three practices for developing a comprehensive, sustainable strategy and underlying transformational plan, namely creating a framework for holistic risk governance, forming partnerships that center around the sustainable ecosystem (setting up for economies of scope, scale, and skills), and developing sustainable products and services. A sustainability vision is the only way to boost yield and reduce strategic risk; it is not just a marketing gimmick nor an industry goal. Adapting to new societal expectations, dealing with expanding regulatory requirements, reducing the protection gap, generating new revenues, and improving resilience are now more important than lowering carbon footprints.
Part 2 of this IDC PeerScape will be published shortly after the first publication, with additional best practices focusing on embedding ESG strategies within insurance operations. Among many other actions, this means implementing energy-efficient, paperless business practices to decrease the carbon footprint of the insurance operations as well as setting up sustainable real estate strategies.
"Mutualizing and managing risks are at the heart of insurance — two concepts closely related to environmental, social, and governance integration and climate change abatement. This represents a clear opportunity for insurers to reclaim their societal purpose to fuel growth and attract new customers by showcasing their commitment to sustainability. Some insurers are now attempting to gain competitive advantage through sustainable products, while others are starting a more proactive conversation with governments on how they can contribute to what appears to be a new social contract," said Davide Palanza, research manager, IDC's Insurance Digital Business Strategies.