LMA and IUA unveil sustainability data resource for insurers

In a development aimed at alleviating the complexities faced by insureds in disclosing sustainability data, the Lloyd’s Market Association (LMA) and the International Underwriting Association (IUA) have unveiled a new resource designed to streamline this process. The recently launched Sustainability Data Standard represents a collaborative effort to address the growing challenges associated with sustainability reporting in the insurance sector.

Addressing the disclosure burden

The impetus for creating the Sustainability Data Standard stems from the increasing burden placed on insureds to comply with diverse and evolving sustainability reporting requirements.

As Paul Davenport, finance and risk director at the LMA, explained, “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 lack of standardisation has resulted in a cumbersome process for insureds, who often face multiple and varied data requests when purchasing coverage from different insurers. Davenport further elaborated, “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.”

Simplifying the reporting process

To address these issues, the Sustainability Data Standard introduces a set of 22 questions that standardise the format for disclosing sustainability data. This initiative aims to streamline the often intricate and time-consuming task of data provision, making it easier for insureds to meet their reporting obligations.

Madeleine Fox, legal services executive at the IUA, highlighted the evolving nature of sustainability disclosures and the need for a dynamic approach. “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 now available through the “Resources hub” on the LMA Sustainability page and on the IUA website. This new resource is expected to significantly ease the reporting process for insureds, providing a more efficient and standardised method for sustainability data disclosure across the insurance industry.

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Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.