Harnessing ESG Data to Improve Commercial Underwriting - Veridion
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A Guide for Commercial Insurance Leaders and Analysts: Harnessing ESG Data to Improve Commercial Underwriting!

Subscribe now for expert insights and innovative strategies on using high-quality ESG (Environmental, Social, and Governance) data to enhance your commercial insurance underwriting.

We will deep dive into..

We will deep dive into..

the challenges commercial underwriters face with capturing and assessing ESG data and will explore potential solutions for improving this critical process.

  • ESG Risks Assessment: A Manual and Ineficient Process Underwriters find the capture and assessment of ESG data to be burdensome and time- consuming.

  • Evaluating ESG Risk Materiality: A challenging process due to lack of ESG data As ESG factors become more pervasive across various lines of business

  • Impact on Underwriting Performance: Better ESG scores - Better Underwriting Performance: There is a notable correlation between ESG risks and underwriting performance. Higher ESG ratings have been linked to better underwriting outcomes.

  • Understanding Veridion's ESG Data: Transforming commercial insurance with ESG insights Explore use cases and a special case study on how Veridion's ESG data supports more accurate assessment of ESG risk, which led to an improved underwriting accuracy and to the development of tailored insurance products.

Assessing ESG risks can consume up to four hours per risk.

  • While this may be justifiable for high-value clients, it becomes impractical across an entire portfolio.
  • Insurers capture ESG data through various methods, including direct input from clients and external sources such as public records and third-party providers.
  • Although it is possible to find relevant ESG information on most publicly listed companies and very large private organizations, there may be little or no data in the public domain for recently listed organizations, especially SMBs.

Commercial Insurers are looking for meaningful data to evaluate the materiality of ESG risks, particularly those related to nature.

  • Insurers face significant challenges in quantifying and understanding the materiality of nature-related risks due to their complex interdependencies.
  • For commercial insurers, Nature related-Risk is a cross-cutting concern that is affecting Underwriting Risk.
  • The ability to assess these risks hinges on the quality of the data collected.

Meaningful data is essential for quantifying ESG risks, but current methodologies and data availability are lacking.

Veridion’s strategy focuses on the granularity of its data.

By leveraging advanced AI technologies to capture and analyze a vast array of global and local news sources, Veridion extracts precise, detailed data related to ESG risk criteria, updated weekly. This approach allows insurers to see beyond the surface level of aggregated scores and understand the underlying factors contributing to a company’s ESG profile. In doing so, Veridion addresses the common criticism of ESG rating methodologies being opaque and gives insurers “the truth,” empowering them to make informed decisions based on comprehensive, detailed data.

Veridion’s ESG data is updated weekly and comes from publicly available news sources, including a company’s digital presence:

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Comprehensive News Analysis:

  • Veridion leverages AI and advanced technologies to scan a wide array of news sources, both global and local news, identifying and extracting relevant information on specific ESG risk criteria.
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Focused ESG Risk Criteria:

  • Veridion's data collection is tailored to specific ESG risk criteria that are critical to insurers, such as atmospheric contamination, carbon footprint, and illegal deforestation, among others. This targeted approach ensures that the data is highly relevant to assessing ESG risks. Here is a list of Veridion’s ESG Risk Criteria and topics - please view Sustainability Topics TAB.
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Accurate and up-to-date business ESG initiatives:

  • By extracting real-time ESG updates from news and a company’s digital presence on the web, Veridion ensures that insurers have access to the most current information on latest business ESG initiatives.
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Extensive Coverage:

  • Veridion's data covers 89.9 million companies across 246 countries, providing insurers with a comprehensive understanding of global ESG landscapes.

Understanding Veridion’s ESG data

  • Veridion’s unique approach of extracting data from multiple sources of a company’s digital presence means that the information is not only accurate but also current, presenting the latest ESG initiatives that the business has started to take.
  • The insights into companies’ ESG practices, initiatives and challenges are essential for commercial insurers, who need to make decisions based on the latest available information, including transition plans that is currently the most time-consuming and challenging data to find.
  • Veridion’s data enables commercial insurers to respond swiftly to emerging risks and opportunities, adjusting their underwriting strategies and portfolio allocations accordingly.

If you want to:

Gain a comprehensive understanding of Veridion’s ESG data and ESG risk criteria.

Explore examples of ESG risks and current regulations, and examine their potential impact on commercial insurance underwriting.

Explore a few cases that show clear correlation between ESG risks and insurance losses
Read our CASE STUDY: Evaluating the True Risk Profile with Veridion’s ESG Data

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“Harnessing ESG Data to
Improve Commercial
Underwriting!”

With this report, you'll unlock answers to key questions, such as:

What challenges do insurers face with ESG data?

Learn how the lack of accurate and comprehensive data, especially for SMBs, complicates the assessment process.

How do ESG risks impact underwriting performance?

We will look into Howden and Fidelis 2022 study that correlates higher ESG ratings with better underwriting outcomes.

What solutions does Veridion offer?

Explore Veridion’s strategy, which focuses on capturing granular ESG data and using specific risk criteria to provide detailed insights into companies’ latest ESG initiatives.

How can Veridion's ESG data help commercial insurance?

Review use cases and a detailed case study to understand how Veridion’s ESG data enhances risk assessment and product development in commercial insurance.

Embark on this transformative journey with us, and equip yourself with the knowledge and tools necessary for success in the commercial insurance digital age.