The insurance industry is undergoing significant changes, driven by the need to adapt to evolving customer needs, technological advancements, and increased regulatory requirements.
At KPMG, we believe that Digital Transformation and ESG are rank high in the agenda of insurance companies in Greece and across the world.
ESG considerations have become increasingly important for companies globally, and could not leave insurance companies unaffected. In Greece, the New Climate Greek Law (4936/2022) and the Corporate Sustainability Reporting Directive (CSRD) require timely management consideration and action.
The New Climate Greek Law sets the goal of transitioning the country to climate neutrality by 2050. The law requires all insurance companies in Greece to submit a Carbon Footprint Report for the year 2022 untill 31 October 2023. The GHG Protocol Corporate Accounting and Reporting Standard provides guidance for companies preparing a corporate-level GHG emissions inventory classified under 3 scopes. Essentially scope 1 and 2 are those that are owned or controlled by companies and 3 are consequences of their activities.
The CSRD expands the scope of companies subject to mandatory non-financial disclosure. Companies must report up to 113 non-financial KPIs and additional qualitative metrics, with listed companies publishing their first sustainability report in 2024. KPMG has developed a readiness assessment tool to measure an organization's level of CSRD compliance and information published in the company's most recent annual sustainability report. The directive is expected to be incorporated into national legislation.
Digital transformation is essential for insurers to stay competitive and adapt to changing market dynamics. Actuarial transformation involves people organizational model redesign along with integrating advanced technologies and data analytics into actuarial processes to enhance efficiency, accuracy, and decision-making.
Advanced analytics techniques, such as predictive modeling, machine learning, or artificial intelligence, enable actuaries to gain deeper insights from data and improve the accuracy of the outcome of the risk assessment process. Automation of routine actuarial tasks, such as data gathering, calculations, and reporting, frees up time for actuaries to engage in higher-level analysis, focus on solutioning and identify opportunities for the insurance organization to evolve their offerings and grow. Visualization tools present complex information in a clear and actionable manner that enable insurers to make informed decisions about risk management, capital allocation, and product development. Technology facilitates regulatory compliance processes, ensuring adherence to evolving regulations such as the CSRD.
It is becoming increasingly apparent that ESG and digital transformation are key priorities for the insurance industry in Greece and beyond. The New Climate Greek Law and the CSRD require immediate management attention. The Future of Actuarial role is an essential aspect of digital transformation for insurance companies. Insurers that embrace these changes will be better positioned to adapt to the evolving landscape and deliver better business outcomes.
At KPMG, we are committed to helping our clients navigate these changes and realize the opportunities presented by digital transformation and ESG considerations. Our team of experienced advisors can provide insights and guidance on these topics to help your organization succeed.
