The Lloyd’s Market Association (LMA) and the International Underwriting Association (IUA) have unveiled a new resource aimed at standardising how underwriters gather sustainability data from clients.
Named the Sustainability Data Standard, the tool comprises 22 questions intended to create a uniform format for insureds to use when submitting sustainability information during the underwriting process.
The primary goal of the IUA and LMA is to streamline the insured’s experience by establishing a consistent set of sustainability points and a standardised form for data submission, hopefully alleviating the often cumbersome task of providing sustainability data to insurers.
“In recent years, we have seen a growing burden on insureds to disclose their data in line with ever more stringent sustainability reporting requirements,” LMA finance and risk director Paul Davenport noted.
“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.”
IUA legal services executive Madeleine Fox, meanwhile, pointed to the evolving nature of sustainability disclosures.
She 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 can be accessed through the IUA website and the LMA sustainability page’s resources hub. Last year, the LMA launched its Sustainability Academy to help professionals navigate the evolving sustainability landscape.
What do you think about this story? Share your thoughts in the comments below.
