The Relevance of Governance in the Insurance Sector Withinthe Framework of Sustainable Investments

• Jaume Llorca Galiana ^[1]
  1. [1] Universitat d'Alacant

     Universitat d'Alacant

     Alicante, España

     
• Localización: Sustainability and the Insurance Market: Trends and Challenges / coord. por Juan Bataller Grau, Marcin Kawiński, Pierpaolo Marano, 2025, ISBN 978-3-031-72185-4, págs. 95-114
• Idioma: español
• Enlaces
  • Texto Completo Libro
• Resumen

  • The insurance sector plays a crucial role in transitioning towards a more sustainable financial system. In this context, Regulation 2020/852, known as the European Taxonomy Regulation for Sustainable Activities, establishes a regulatory framework whose primary objective is to facilitate investments in economic activities that meet ecological sustainability criteria. This regulation introduces a detailed classification system for such activities, thereby directing investment flows towards options that are not only profitable but also environmentally friendly.

    It is imperative to recognise that investor confidence in sustainable products, which may still be perceived as novel, is a fundamental element for the acceptance and expansion of these financial instruments. For this reason, it is essential to have a robust product governance system that provides effective investor protection guarantees and fosters solid trust in these investment modalities.

    The recent European regulation not only facilitates investments in sustainable activities but also promotes consideration of investors’ sustainability preferences, which represents a significant change in the dynamics of the insurance industry. This regulatory approach has a relevant impact and, although it is in an early stage of development, it is anticipated to have an undeniable significance in the coming years.

    This legislative transformation reflects a commitment to sustainability that is expected to contribute decisively to the reorientation of the financial sector towards more sustainable practices, thereby ensuring an effective integration of environmental considerations in financial investment decisions.