The UK's goal of achieving Net Zero by 2050 gives the property insurance industry a powerful opportunity to lead by example. Already primary drivers of "building back better" initiatives, insurers can create sustainable claims practices by combining two key strategies: early, consistent collaboration with their supply chain and embedding carbon data into their decision-making. These approaches demonstrate how a commitment to sustainability can become a core part of any company's business model, setting a powerful example for every sector.
Driving environmental change through strategic collaboration and data-driven claims management
Since the United Nations adopted the 2015 Paris Agreement, the United Kingdom has been making steady progress toward its 2050 Net Zero goal. Still, there is a long way to go — especially for the many property insurance companies on a mission to go beyond meeting the minimum targets.
Sustainability is more than just fulfilling regulatory obligations. It’s about nurturing our environment and economy so that many future generations can thrive.
At Cotality™, we believe that insurance companies and contractors can serve as vanguards by establishing sustainable property claims processes that set a standard for other industries.
The property insurance industry can bring sustainability into claims process with two simple strategies:
- Fostering collaboration across the supply chain
- Making decisions based on clear, measurable carbon data
Collaboration with the supply chain up front to reduce emissions
Traditional claims processes can generate significant greenhouse gas (GHG) emissions, and as much as 80–95% of them originate with the supply chain. Most fall under Scope 3 emissions: indirect emissions from upstream and downstream activities tied to the production, transportation, and delivery of goods and services.
By engaging all stakeholders early in the decision-making process — before onsite claims work begins — insurers can better coordinate repairs and replacements, reduce unnecessary trips, and streamline logistics.
The repair versus replace decision is a loaded one, and Insurers and contractors can also collaborate more effectively up front to determine when repair and restoration are feasible alternatives to full rebuilding. When certain building components can be salvaged, materials are kept out of landfills and repair timelines are shortened. Costs are thereby reduced for everyone involved — including the environment.
Eliminating superfluous emissions is a vital step toward achieving Net Zero targets and building a more sustainable insurance sector. Clear communication across the supply chain is key to making that happen.
Data-driven claims decisions to improve the existing built environment
The built environment accounts for roughly 25% of the UK’s greenhouse gas emissions (and up to 40% globally). While emissions from insurance claims and repairs represent a relatively small share of this total, their environmental implications are still significant. By taking proactive steps to reduce and eliminate these emissions, insurers can make measurable progress toward their Net Zero goals.
Property insurers can streamline processes like Build Back Better and embed resilient building design principles by shaping data-driven workflows to minimise waste while maximising refurbishment, repurposing, and recycling of materials. This approach aligns with Circular Economy principles.
It starts with making efficient choices about the energy and materials used in rebuilding, providing transparency to customers about the sustainable methods applied to their property, and running lean operations that reduce duplication, delays, and rework.
When replacement materials are needed, insurers can choose greener alternatives, even when the price tag may be higher. By assessing repairs based on upfront cost as well as environmental impact and long-term value, carriers can make fully informed decisions. These decisions can even be defensible when insurers use technology that tracks the environmental footprint of materials and processes. Proof is, after all, important when justifying choices to both policyholders and regulators.
It remains uncertain whether the government will subsidise this change, as it did with Build Back Better. Insurers could either absorb the costs or pass them on to policyholders—who may not always be willing to pay for sustainable repairs. Regardless, it is crucial to shed light on the environmental impact of insurance and claims decisions.
The technology that tracks
Sustainable decision-making cannot happen without a foundation of real-time robust data.
With technology that delivers measurable emissions data, insurers could underwrite so-called green policies — distinct in coverage and marked by a real commitment to repair-over-replace principles. This would represent a significant shift in direction for personal lines insurance.
When we talk about technology that measures the emission impacts of materials and processes, we mean solutions that generate robust data on the carbon footprint of both the materials used and the activities within their supply chain — that is, their scope 3 emissions. Equally important are tools that take these insights and turn them into actionable insights so that insurers know the next steps for making meaningful decisions and taking sustainable initiatives.
Insurers can begin by prioritising software that measures carbon emissions. With clear, accurate data on one of the most significant greenhouse gases, they can most effectively focus their sustainability efforts.
Digital bonus: Carbon data for both decisions AND collaboration
Data doesn’t just drive decisions — it also drives the collaboration we discussed earlier, an often-overlooked element of sustainability.
Software that generates carbon data equips insurers with the insights needed for meaningful collaboration and strategic conversations. Measurable emissions data provides the foundation for communication around when to refurbish rather than replace when possible, and how to select sustainable products and materials.
After all, the best conversations occur when everyone — insurers and all intermediaries — have a seat at the table.
Join the conversation this September
Real change depends on the cooperation of suppliers, policyholders, and insurers alike.
While Net Zero efforts began a decade ago, we at Cotality recognise that this is just the start of the journey. We are committed to sustainability, providing the software you need to build properties and communities back better — so they serve not just today’s generation, but the generations to come. It all begins with the powerful conversations we will have at INTRConnect™ Europe 2025 next month.
The race to Net Zero will involve many decisions driven by data and collaboration, and a critical move you can make imminently is to attend INTRConnect. You’ll leave inspired, equipped, and ready to supercharge sustainability.
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