Insurtech, the field blends insurance and technologies is changing the game in the insurance sector noted by Bahaa Abdul Hussein. Insurtech companies are making use of the latest tech to promote sustainable changes and support environmentally conscious projects.
Every industry today is making the shift towards sustainable business practices as the impact of climate change is the need of the hour. The insure industry is also guided by eco-friendly goals in recent times, encouraging both insurers and policyholders to welcome these sustainable methods. Here are the following ways by which the insurance tech industry is ushering in green changes in recent times.
- ESG Goals
ESG (environmental, social, governance) principles are a fundamental part of making sustainable insurance accessible to everyone. They are integrated into the business strategies, management of risks and decisions impacting investments.
- Using A.I. to check emissions
Artificial Intelligence is used as a tracking tool that sheds light on carbon emissions by the insurance industry. Steps are then taken to tackle the issue and set goals for the key pollutants to reduce the same.
- Promoting eco-friendly initiatives
Companies who have a good track record for being sustainable and supporting environment-friendly projects are welcomed by insurance companies. They are offered lower insurance costs and given incentives to make more companies go green.
- Encouraging transparent businesses
Transparent practices are an important tenet of 21st century insurance technology. Since they support sustainable practices, they are socially responsible to share their emission data to fulfill their ESG goals every year.
- Managing risk
Insurers are also able to predict the risks associated to climate change owing to insurance technologies. This helps in formulation of effective risk-managing strategies and slashing down on the emissions.
- Support local communities
Sustainability is also being promoted by the insurance industry at the microfinancial levels. Targeting low and middle class communities in vulnerable areas is an important “Social” goal to fulfill in the larger goal to impact sustainability.
Advantages of Sustainable Insuretech
Using green insuretech practices comes with a host of benefits to both consumers and companies. For starters, today’s consumers are proactively seeking out eco-friendly companies to support and invest in. Ecological consciousness gives you an edge over your competition. On the company’s end, it means you’ll be able to save on different costs. Managing risks in order to control your carbon footprint helps you devise strategies that can also cut down on your losses. Say you are an organization that uses clean fuels and has significantly less emissions than other pollutants in the industry. You will be benefiting from lower premium and risk. In this way, insuretech is trailblazing the insurance industry.
The article has been written by Bahaa Abdul Hussein and has been published by the editorial board of www.fintekdiary.com.
