Assessing the implementation of ESG criteria in the frontrunners insurance companies in the Spanish market

Abstract

Purpose: This study aims to explore the implementation of Environmental, Social, and Governance (ESG) criteria within the insurance industry by assessing the frontrunners companies in the Spanish market. Design/methodology: Utilizing a mixed-methods approach that combines quantitative and qualitative analyses, this research provides an empirical examination of ESG criteria application within the Spanish insurance sector. The study adopts the Principles for Sustainable Insurance (PSI) framework to assess ESG implementation across leading insurance companies by employing cluster analysis and Qualitative Comparative Analysis. Originality/value: This study contributes to the academic literature and managerial practice by offering a robust framework, model, and methodology for ESG assessment, as well as identifying patterns in ESG adoption. Additionally, the article explores how the combination of outstanding PSI principles achievements influences the ESG rating performance of insurance companies. Findings: The findings reveal that multinational companies generally outperform in ESG criteria due to their formal governance structures. Key insights include strong performance in strategy and investment management but weaker engagement in claims management and product innovation. Practical implications: The article offers valuable insights for managers by providing a comprehensive and detailed understanding of how leading companies in the insurance industry are implementing ESG criteria. Moreover, it highlights patterns and differences among companies based on their segment and main characteristics. The findings can also be beneficial to regulators and organizations promoting ESG implementation, as well as those responsible for developing the reference frameworks used in the analysis. The study helps identify the variables where ESG criteria are more thoroughly embedded and highlights areas that require further strengthening in terms of ESG approaches. Social Implications: This article offers insights into how insurance companies incorporate the social aspect of the ESG framework. It also emphasizes the significance of understanding and implementing the Sustainable Development Goals and other key elements related to sustainability.