Insurance companies—like companies in many other industries—are under increasing pressure to adopt ESG-friendly practices. The COVID-19 pandemic, a growing spotlight on climate change, and emerging social movements have all given rise to more socially and environmentally responsible consumers.
Each of the three components of ESG addresses a different angle from which to prioritize socially conscious practices: environmental, social, and governance.
Environmental considerations focus on the impact the organization and its investments have on the environment, including but not limited to energy usage, waste, pollution, resource conservation, and more. Social considerations focus on the enterprise’s impact on internal and external stakeholders, including staff, suppliers, customers, and communities. These encompass inclusivity, equity in hiring and paying staff, working conditions, and more. Governance considerations include anti-corruption, anti-bribery, anti-money laundering, risk management, and ethical business practices.
Each category of ESG encourages businesses to look beyond their bottom line and consider their impact on the planet, their stakeholders, and communities.
As insurers learn to navigate ESG-conscious efforts, two key struggles of ESG management have come to the forefront:
Despite the challenges ESG brings to insurance companies, it’s a priority for consumers. So how can insurers manage their ESG efforts more effectively?
Insurers—particularly those who have been in business for many years—often rely on 10, 20, or even more than 30 systems that house ESG-related data. A key challenge the insurance industry faces is quickly adapting to changing ESG requirements, which requires gaining visibility into all ESG data elements across the enterprise and validating them against a list of evolving ESG criteria and attributes.
With outdated, siloed systems, insurers are not set up to successfully track and report on ESG compliance. Rather than retire older solutions that the enterprise has been reliant on, insurers can reap benefits by using a low-code platform to unify and extend existing technologies.
Built with open integrations and APIs, a low-code platform connects insurers’ solutions to bring data into a single source of truth and house mission-critical data in a digestible, unified view. With low-code, insurers can dramatically streamline ESG management with these benefits:
With a low-code platform, insurers increase efficiency in ESG efforts across the organization, including these critical functions:
Unifying data and streamlining processes across these departments and teams will improve ESG management for insurers and ease the workload on internal stakeholders responsible for ESG reporting.
A robust low-code platform helps insurers rapidly build and automate workflows by combining people, technology, and data in one place. To realize the full power of low-code, the platform needs to unite and augment workers and resources and including these features:
ESG efforts will continue to increase in urgency for organizations around the world. With low-code, insurers have a foundation for easy management and reporting on their efforts as expectations and guidelines change, helping them remain agile. Insurers looking to better manage ESG data will see vast improvements with a low-code platform—and ESG efforts are just one of many ways to use the solution in the insurance industry.