Author(s): Silky Vigg Kushwah, Garima Mathur
Financial sustainability is becoming increasingly crucial in the corporate world, and in recent years, many firms have taken tremendous measures to embed financial sustainability activities in their business model. Some of the firms utilize financial sustainability practices as one of the marketing tools to build a strong brand image. To understand the role sustainable finance plays in the financial sector, especially the Insurance sector, this paper studies five major private and public sector insurance companies in India and access their best practices, standards and trends in sustainable finance. This study analyses the common practices of the insurance sector towards social and environmental considerations. It also examines the best practice initiatives by these companies to understand the scope and extent of financial sustainability in the Indian insurance sector. The survey method has been used to conduct the study where a self-made questionnaire was administered among top managers of insurance companies in north India. A purposive sampling technique has been used to select the respondents. The results highlight that most insurance companies report sustainable finance activities in their performance reports and embed them in their operations and strategies. Many insurance companies introduced sustainable products with social and environmental consideration, and sustainable finance is considered an important criterion for screening their investments. Some Insurance companies have also intensified the involvement of stakeholders in solving sustainable issues and consider customers concerns. It can be concluded that the Indian insurance sector has taken a path of financial sustainability, and continuous efforts are being made towards social and environmental considerations. These firms are showcasing their small efforts in sustainable finance as a neoliberal marketing tool. Still, there is a long road ahead, and much more can be achieved in this area to reach sustainable finance. This study is useful for many stakeholders of the Insurance sector. The regulators can use the results, especially Insurance regulatory and development authority (IRDA), India, in their policy matters related to sustainable development. It will also be of great interest to all insurance companies to understand the current status of the Insurance sector in sustainable finance and where the gap is, and how it can be filled.