The European insurance and reinsurance federation, Insurance Europe, is recommending the abolition of the ‘key performance indicator’ (KPI) for insurance underwriting, in a position paper published on Friday 28 March. At the very least, it hopes to suspend its application in order to have time to examine its usefulness in depth.
This KPI measures the alignment of insurance underwriting activities with the sustainability criteria defined in the taxonomy and assesses the extent to which the insurance products underwritten by a company comply with the EU’s environmental, social and governance (ESG) objectives. The industry notes that this KPI is not proving useful in assessing insurers’ contribution to sustainable investment and that it creates too great a reporting workload.
It also supports the introduction of a 10% materiality filter, which should exclude companies with fewer than 1,000 employees in order to simplify reporting. As part of the simplification efforts introduced by the European Commission with the ‘omnibus’ package, ‘Insurance Europe’ is also proposing to simplify reporting on fossil gas and nuclear activities.
Read the position: https://aeur.eu/f/g65 (Original version in French by Anne Damiani)