ESG Reporting in Insurance

Considering taking a closer look at your ESG reporting? There’s never been a better time. Why? We’ve narrowed it down to three key reasons:

• Commercial: regulation is changing investor behaviour
• Competitiveness: customers are increasingly sensitive to their perception of your brand
• Compliance: regulations are being developed with little time to incorporate into existing processes.

Insurance companies are rushing to the finish line of a reporting year that included both a significant accounting change and the first year of mandatory climate reporting. You can expect that it will not be the last of the changes. So why would we even think about suggesting you start to consider ESG reporting improvements?

Mainly because out of the key annual reporting pieces (solvency, financial, non-financial), it is the one where there is the most flexibility and biggest opportunity for impact.

We know that realistically, the first year of anything is really just to get through and get it done. With everything going on there is little time to think and plan around how all the reporting pieces fit together. But, investors now expect to recognise the same underlying business model and strategy to be reflected throughout the these external reporting areas. So it is becoming more important to have a consistent and connected narrative.

Practically, the sooner we pick up on the lessons learned from the first year of reporting and plan for the “refinement round”, the easier it should be. It may also help to set you up to more effectively deal with any new requirements coming your way in the not-too-distant future.

Your NZIFRS 17 / CRD project teams are match fit with their understanding of the reporting processes, technology and controls, so can create valuable efficiencies for your ongoing ESG reporting.