Enabling sustainability for insurers through the cloud

Sustainability, insurers, and the cloud

The role of sustainability in businesses has evolved significantly over the years, with a more integrated approach now being the norm. Insurers are now prioritizing sustainability because it helps them proactively address climate-related risks, innovate new products and services, adhere to evolving regulations, and improve brand perception. In this pursuit of sustainability, insurers are leveraging cloud-based technology solutions to streamline their processes and enhance their capabilities.

For instance, using cloud platforms, insurers can transform weeks of data gathering, hardware procurement, system integration, and security reinforcement into a matter of minutes. This can enable them to provide climate change scores more quickly and efficiently than ever before. The use of cloud-based technology solutions in insurance also contributes to sustainability by reducing the sector’s environmental impact. Moving information technology (IT) data center operations to the cloud can significantly reduce carbon emissions. The cloud can help insurers with the following major sustainability priorities.

How insurers can meet sustainability goals with the cloud

1. Risk mitigation: Cloud computing solutions enable insurers to analyze vast amounts of environmental, social, and governance (ESG) data. By harnessing advanced analytics in a cloud environment, they can identify potential risks and develop proactive strategies. For instance, the insurance organization AIG uses ESG data analysis to adjust client coverage based on potential risks.
2. Product and service innovation: Cloud-based technology and solutions allow insurers to create digital experiences such as virtual payment capabilities and smart claims management. They also enable the development and agile delivery of new insurance products that can adapt to a rapidly evolving environmental risk landscape, as demonstrated by Munich RE’s climate risk solution.
3. Compliance adherence: Cloud-based solutions can help insurers manage compliance with evolving regulations. They provide a secure and efficient platform for maintaining records, reporting, and ensuring adherence to standards. With improved data management and transparency, insurers can better meet regulatory requirements.
4. Brand perception: By leveraging cloud technology for sustainability efforts, insurers can improve their brand perception. They can demonstrate commitment to environmental responsibility, data security, and innovative solutions—enhancing their reputation with customers and stakeholders. Cloud adoption can signal an insurer’s forward-thinking approach and dedication to sustainable practices.

Elevate your sustainable insurance journey with Deloitte

Notable insurance companies have adopted sustainability into their business strategies. They are investing in projects contributing to a low-carbon and sustainable future, engaging in community and social impact programs, purchasing renewable energy, and tracking their emissions. This approach helps capture new opportunities, support underserved markets, and increase profitability through diversified revenue streams and cost savings from better risk management.

Deloitte has helped clients worldwide attain their sustainability goals using cloud-based services. Our services—which span strategy, operations, finance, and technology—enable us to deliver a wide range of solutions to our clients. These include revamping underwriting to promote sustainability, complying with climate-related regulations, implementing sustainable finance strategies, creating net-zero strategy roadmaps, integrating and scoring ESG risks, and beyond.

Learn more in our full report.