ESG and Net Zero regs are something every medium-large company has to comply with, so it’s good to know there are toolkits to help with this admin when it comes to underwriting risks. Here’s the word;
A new resource to standardise the way in which underwriters ask clients about their sustainability data has been released by the Lloyd’s Market Association (LMA) and the International Underwriting Association (IUA).
The Sustainability Data Standard is a set of 22 questions designed to introduce a standard form for insureds to complete when disclosing any sustainability data as part of the underwriting process.
In doing so, the IUA and LMA are looking to simplify the insured’s process by developing a set of sustainability points and standardising the form in which insurers request this data. The hope is that this will streamline the often lengthy task for insureds of providing sustainability data to their insurers.
Paul Davenport, Finance and Risk Director at the LMA said: “In recent years, we have seen a growing burden on insureds to disclose their data in line with ever more stringent sustainability reporting requirements. Insurers and brokers have individually developed their own surveys for collecting this data, which has led to a situation where no two requests for data is ever the same. This represents a major undertaking for an insured buying cover with a number of different insurers. This collaboration between the LMA and IUA seeks to standardise this and soothe the growing pain point for all parties.”
Madeleine Fox, Legal Services Executive at the IUA said: “Sustainability disclosures are an increasingly important reporting requirement and will no doubt develop further over time. Our guide is, therefore, designed to be updated in line with the regulation it supports. We recognise the work clients must put into these disclosures and this new resource is designed to reduce the effort they require.”
The Sustainability Data Standard is available under the “Resources hub” on the LMA Sustainability page and on the IUA website.
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