Re/insurance broker Protecdiv has launched a tool designed to measure and report the “social” component of ESG on the liability side of a balance sheet.
Protecdiv states that SERV-S, the Social Equity Risk Vector Score, provides a score for commercial property, residential property, and mortgage re/insurers to quantify the social element of their ESG goals.
The tool combines re/insurers’ portfolio data with national economic and risk data to calculate the social benefit generated by their insurance portfolios.
Kael Coleman, Founder and Chief Executive Officer at Protecdiv, says, “For ESG initiatives, the insurance and reinsurance market needs better measurement and reporting to properly address the ‘S’.”
“We have created a tool that allows the market to leverage our expertise as a reinsurance broker with a specific focus on improving society through insurance. We have the know-how to champion and grow your social equity impact.
“Many insurers are already providing significant social equity value through their writings; SERV-S can help them report this value to stakeholders. For companies that want to improve their ESG rating, we can give them guidance on how they could adjust their writings to improve their score in a way that is accretive to the company’s bottom line,” he adds.
Cate De la Cruz, Senior Director of Analytics at Protecdiv, notes, “Underwriters and re/insurance executives very much stick to the mantra of ‘what gets measured gets done’. They want to be more socially conscious but also have combined ratios and market margin targets to hit.
“This tool gives our clients something tangible to work with. We provide a score between one and five, which gives companies directional advice for laying a footprint in socially vulnerable or disadvantaged areas. This may encourage them to write business in those areas and downstream.
“We believe that those areas will see social benefits as a result of property insurers or mortgage underwriters writing more business there,” concludes De la Cruz.
