Insurance Industry

The revised Solvency II framework will apply from 30 January 2027 and strengthens the integration of sustainability factors into risk management, including plans with quantifiable targets and processes to monitor and address financial risks arising from sustainability factors for undertakings within scope. Joint supervisory ESG stress-testing guidelines for banking and insurance will also apply from 1 January 2027. Insurers and relevant financial products additionally interact with the EU Taxonomy and SFDR frameworks, while EIOPA is actively reviewing and simplifying Taxonomy-related insurance disclosures in 2026.

Priority workstreams include physical climate-risk mapping, forward-looking scenario analysis, transition-risk exposure, sustainability-related underwriting criteria, portfolio data quality and credible green-product design. Claims management is another practical opportunity: repair, replacement, materials and logistics can be compared environmentally so that lower-impact options are supported where technically and economically appropriate. Any sustainability-linked insurance proposition should have transparent eligibility criteria and measurable outcomes to reduce greenwashing risk.

Metsims can support insurers with climate-risk and scenario frameworks, portfolio sustainability analysis, EU Taxonomy assessments and environmental criteria for products or underwriting programmes. A distinctive area of support is claims sustainability: LCA-based decision tools can compare repair versus replacement, alternative materials, service logistics and end-of-life outcomes for insured assets.

Metsims can also develop sustainability KPIs, data templates and pilot methodologies that connect underwriting or claims decisions with measurable environmental performance. For investment and corporate reporting teams, carbon accounting and sustainability-data structures can provide a consistent analytical foundation. The goal is to convert sustainability from a qualitative risk theme into decision criteria that can be tested, documented and monitored.

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