Insurance Europe calls for ‘phased-in’ approach to ESG disclosure

Written by Adam Cadle

17/08/2020

Insurance Europe is calling for a phased-in approach to ESG disclosures that allows financial market participants to implement comparable and meaningful reports.

In its response to the European Supervisory Authorities’ (ESA) joint consultation concerning ESG disclosures, Insurance Europe said “the ESAs should adequately consider implementation challenges and related timing implications, including those related to the quality and availability of existing ESG data”.

“More broadly, it is essential to ensure that there is consistency across related policy developments including the EU taxonomy, the Non-Financial Reporting Directive (NFRD) review, and ongoing amendments to the Solvency II and Insurance Distribution Directive (IDD) delegated acts with respect to sustainability preferences,” it said.

Regarding product-level disclosures, Insurance Europe said there is a risk that the regulatory technical standards (RTS) are too prescriptive and will result in overly complex consumer information.

“Mandatory templates should also be avoided to allow for flexibility in implementation at national level and across various product types,” it added.

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