The Impact of Sustainable Finance on Insurers’ Activity

Abstract

The article contains an analysis of the impact of the sustainable finance provisions either currently being developed at the European level or already partially implemented on the activities of insurance companies. These regulations will affect insurers’ activity as they play an important role in adapting the EU economy to climate change, above all, acting as long-term investors and risk managers, but also through appropriate management of the provided insurance cover. At this stage, the system seems to be quite complicated. The adopted sustainable finance regulations impose a number of obligations on insurance undertakings, particularly those offering insurance investment products, e.g. additional disclosure obligations, either general or addressed to individual clients. Moreover, insurance companies will have to comply with the restrictions on their investment policy. Besides, it should be emphasised that the adopted solutions do not fully consider the specific nature of insurance activity or individual character of national EU economies. As a consequence, the introduction of the sustainable finance regulation will certainly pose a significant challenge for insurance companies operating in Poland.