New sustainability data standard launched

A new sustainability data standard has been released by the Lloyd’s Market Association (LMA) and the International Underwriting Association (IUA).

The resource contains a form of 22 questions, designed to standardise the way in which underwriters ask insureds to disclose sustainability data as part of the underwriting process.

“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 said.

“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.”

’Pain point’

By releasing the resource, the IUA and LMA hope it will provide a blanket reference for firms to use that will, in turn, simplify and streamline what is an “often lengthy task” for insureds.

Davenport explained the current policy journey “represents a major undertaking for an insured buying cover with a number of different insurers”.

“This collaboration between the LMA and IUA [therefore] seeks to standardise this and soothe the growing pain point for all parties,” he added.

Meanwhile, the IUA’s legal services executive Madeleine Fox 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.”