As the world moves towards a low-carbon future, the financial services industry will play a crucial role in providing the capital and insurance needed for the transition. However, without innovative financial solutions, this transition will be impossible. That’s why it’s important for insurance executives to stay up-to-date with the latest sustainability trends and innovate accordingly.

In a recent roundtable conversation hosted by Capgemini, sustainability and business experts discussed the topic of sustainability in innovation. The panel included executives from Capgemini, MUFG Americas, InsurTech Hartford, and Microsoft, among others.

Here are five steps insurance executives can take to innovate for sustainability in financial services:

1. Appoint a Chief Sustainability Officer Many major financial services organizations are now appointing chief sustainability officers who are focused on developing teams that are finding new ways to measure and manage things. This measurement is crucial for developing a robust data strategy.

2. Create Enterprise-Wide Data Systems Banks around the world are creating enterprise-wide data systems so that they can see across everything and take corrective action by measuring what is good, what is not good, and what is failing. These insights enable chief sustainability officers to define a robust data strategy.

3. Hyper-Personalize Products Financial services organizations need to think about how they can hyper-personalize products to meet what’s happening in different geographies and different zip codes, especially on the property and casualty side. This will help firms meet the demands of customers while also making money without discounts or driving up prices.

4. Consider the Impact on Life Insurance Changes to the planet and to life expectancies are impacting the life insurance industry. Financial services organizations need to think about how they can offer products that meet the demands of customers while also accounting for these changes.

5. Embrace Regulation Regulation is becoming increasingly important in the financial services industry. Most of it today is self-regulation, but institutions like the Federal Reserve are also getting involved. Financial services organizations need to embrace regulation and use it as an opportunity to innovate for sustainability.

At Riskwolf, we enable insurers to build and operate parametric insurance at scale using unique real-time data and dynamic risk modeling. If you’re interested in learning more about how we can help you innovate for sustainability in financial services, get in touch with us today.

Source: Capgemini