Insurers can turn regulations into social added value
Interview with Patrick Dannenburg & Melchior Mattens – February 2025
Insurers are faced with the challenge of complying with stricter regulations on sustainability. However, you could approach this challenge differently: where regulations are often experienced as a burden, they give opportunities to proactively contribute to social change. Patrick Dannenburg and Melchior Mattens explain their vision, and how Arcturus can help insurers with this.
Sustainability: approach it from intrinsic motivation
There is no way around it: the laws and regulations around sustainability, like the CSRD and EU taxonomy, force insurers to become more transparent. Patrick Dannenburg, partner at actuarial service provider Arcturus, comments: “If you see compliance as a mandatory number, it mainly leads to costs. But when you approach sustainability from an intrinsic motivation, a strategic opportunity arises. What do you stand for and what is your story in this?”
Melchior Mattens, also a partner at Arcturus, explains that insurers can use their social role as risk managers and investors, for example in the area of climate change. Insurers can offer help within this theme. “By strategically focusing on sustainability, insurers can develop a long-term vision that not only covers the mandatory reporting, but also contributes to sustainable business operations.” Many insurers know what they have to report, but struggle with how to give it numerical substance.
Climate risk: models we developed to support insurers
Arcturus offers support by developing models that provide insight into the material risks. Climate change, with increasing risk of flooding, storm damage or wildfires, is also part of this. Dannenburg: “In this way, we not only help insurers with numbers, but also with insight to better serve their customers. By means of modelling and quantification, insurers can not only better understand risks, but also proactively manage them. It works both ways: you comply with regulations, but also have concrete tools for product development, prevention strategies and risk management.” Not only large insurers have to deal with this. For smaller insurers, a strong focus on chain responsibility also offers them the opportunity to strengthen their position and distinguish themselves. Insurers play a crucial role in the sustainability transition. Through their investments and risk models, they can contribute to a more resilient society.
This article was published in the Future of Finance supplement of the FD.
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