Naslov
ESG-Related Challenges in the Insurance Industry: A Multi-Stakeholder Perspective

Autori
Ivanišević Hernaus, Ana ; Krišto, Jakša ; Rako, Ružica

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Skup
Technology, Innovation and Stability: New Directions in Finance (TINFIN) International Scientific Conference

Mjesto i datum
Zagreb, Hrvatska, 05.05.2022. - 06.05.2022

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Domaća recenzija

Ključne riječi
ESG, insurance, multi-stakeholder approach, neo-institutional theory

Sažetak
Challenges of implementation of the environmental, social and governance (ESG) factors in the business environment, such as ESG integration into existing product portfolio, the development of new sustainable products, adjustment of organisational internal policies and business processes as well as disclosure of non-financial information, are gaining momentum globally. These issues are especially challenging for financial institutions, in which management of risks is more complex than in non-financial organisations. The insurance industry, as a professional risk underwriter, is expected to incorporate the concept of sustainability into both asset management as well as internal operations and underwriting processes. The implementation of today’s complex related regulation may seem a great burden for insurers. Apart from being professional risk underwriters, insurance companies are among those financial institutions that have several mechanisms with a long-term horizon (e.g., manage long-term risks ; the nature of their business stimulates interest for investing in sustainable organisations), which is favourable in terms of ESG integration. While much more research studies have been done on the ESG factors implementation in other institutional investors, such as pension funds and especially investments funds, insurers, however, still remain an under-researched field in ESG terms. Less is known about the ways in which insurance companies consider and adopt these non-financial factors in their business. The purpose of this study is to analyse the current status of ESG factors implementation in various segments of insurance business – asset management, financial product development, adjustment of organisation and internal policies as well as non-financial reporting – and to examine its potential from an institutional, multi-stakeholder perspective. The study uses a qualitative survey through in-depth semi- structured interviews (N = 20) with different stakeholders (i.e., industry specialists, supervisory authorities, professional associations, consumers, and researchers). By introducing a multi-stakeholder perspective, we offer a comprehensive understanding of the phenomena. By focusing on the insurance sector of an EU country (Croatia), we find that the current aim of the insurers is to fulfil the minimum of expected compliance with regulatory requirements and that the implementation of ESG products as well as increase of their impact is planned in further business development. The latter is related not only to a development of isolated ESG products, but also, to a great extent, to the alignment of the overall existing portfolio with ESG requirements.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA