Sustainable insurance

Important results from the project

It is important that insurers identify and calculate greenhouse gas emissions in connection with their claims handling processes. Due to the size of the industry, insurers can make a big impact through data-driven decisions. The project´s goal was to identify and understand risks and opportunities associated with emissions that stem from the value chain of property claims, and identify opportunities to reduce emissions. We have succeeded in this by developing a model, the first of its kind, to calculate and manage emissions related to property claims settlement.

Expected long term effects

With the help of the property model, work can now begin on the implementation of a software solution that can be used by insurers. The solution is based on the analysis of all property claims during an insurance year, often thousands of claims, whereby in addition to a calculation of total CO2e emissions, you also get a breakdown of how the emissions are distributed across different segments and sub-areas, and how different choices and decisions (e.g. regarding materials) affect the emissions. This in turn can be used for prioritization and development of reduction plans (targets + KPIs).

Approach and implementation

The project has been carried out in collaboration with our project partner RISE, who has contributed with expertise regarding buildings, repairs, and material use, as well as with developing the correct emission factors needed when calculating the carbon footprint. By spring 2023, we had a version of the model that could handle property claims for private households, including buildings and content. We have also had a pilot customer who has given us access to data for property claims. Currently, the model is also able to handle property claims for small and medium-sized companies.