Inconsistency in ESG question sets is just one of the many hurdles we need to overcome as an industry in order to help influence positive change. This initiative is a step in the right direction - well done to all those involved!
The Lloyd's Market Association (LMA) and the International Underwriting Association of London (IUA) have launched a new resource to standardise the way in which underwriters ask clients about their sustainability data. 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.”
I agree that inconsistency in ESG reporting creates a big issues with data accuracy and comparison across a number of industries, so this is certainly a step in the right direction
Head of ESG Analytics @ AXA XL
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