Crawford Survey Shows Sustainability Becoming A Bigger Factor in Claims Decisions
Corporate sustainability is an important topic in business and particularly insurance, but it turns out that sustainability is also becoming a bigger topic of interest for claims leaders.
Most (77%) of claims leaders report that sustainability is explicitly addressed in their company’s corporate strategy, vision or values—and 76% of claims leaders in a recent survey state that sustainability is an important decision criterion in partner or vendor selection processes, according to Crawford’s new Sustainability Report.
A cross-section of global claims leaders from Crawford’s carrier and broker partner organizations completed a survey to assess the importance of sustainability in their companies and the claims industry. The data from their responses served as the framework for the report.
The report shows that sustainability has a strategic importance in claims and is increasingly driving business decisions.
Among claims leaders surveyed, 70% reported that sustainability considerations impact their adjudication and resolution process. Eighty percent of those surveyed reported that sustainability considerations impact their decisions about the products and services they develop.
In the U.K. and globally outside of the U.S., claims leaders see sustainability as a more important issue than their U.S. peers for customers (77% vs 63%) and their employees (100% vs 81%).
“This is not surprising, particularly in the UK and Europe, which are societally more focused on sustainability than in some other parts of the world,” the report states. “There is stakeholder pressure to consider sustainability issues in these regions, and as our respondents indicated, many companies have their own objectives and targets that the claims function must consider. There is also a regulatory angle in these markets driving an increasing focus on operational resilience and on operating in a more sustainable way.”
The most common sustainability initiative mentioned by claims leaders was an interest in restoration. Many respondents reported their intent to direct claims adjustment work to service providers who have a focus on resilient reinstatement, according to the report.
“Sustainability can significantly influence claims decisions, especially in rebuild scenarios, and incentivizing environmentally sustainable reconstruction during adjudication is a compelling approach,” the report states. “For example, if you are going to rebuild in a coastal area, are there building practices that can help the structure withstand a hurricane or flooding? Can you make sure that the material used is sustainably sourced? Are there options for sustainable waste management or salvage? These decisions can have a tremendous impact on the emissions associated with restoration, reducing costs associated with waste disposal and material consumption and can also enhance a property’s ability to withstand future hazards, effectively mitigating some of the risk of future claims.”