Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
For VIG, the scope of ESRS S4 “Consumers and end-users” includes retail customers as well as small and medium-sized sole proprietorships operated by natural persons. The assignment to this customer segment is based on the customer’s view and is not product-dependent. Internal operations, pension funds, capital investments and corporate customers do not fall within the scope of ESRS S4. If the customer is a legal entity, it is classed as a corporate customer.
The identified negative impacts relate to the provision of adequate and understandable information for policyholders and the protection of personal data. As VIG provides its services in accordance with the applicable legal and regulatory provisions for the protection of privacy, data protection, freedom of expression and the avoidance of discrimination, this risk is minimised.
Consumers and end-users depend on reliable, transparent and easily accessible information about products and services. VIG is committed to responsible information practice and has implemented processes with the aim of presenting information correctly, comprehensibly and appropriately.
As part of the implementation of the Insurance Distribution Directive (Directive (EU) 2016/97, IDD), VIG ensures that information obligations are fully met and that customers can make informed decisions. In this way, VIG insurance companies contribute to transparency, fairness and the protection of customers in insurance distribution.
The two identified potentially negative impacts are related to individual incidents. VIG insurance companies take appropriate action to minimise potential negative impacts where necessary.
The actual positive impact is facilitated by needs-based products and services provided by VIG for policyholders. Detailed information on this is provided in the chapter “Strategic principles” in the Group Annual Report or under ESRS 2 MDR‑P “Policies adopted to manage material sustainability matters”.
The promotion of risk literacy is regarded as an entity-specific positive impact. The aim is to enable as many consumers and end-users as possible, whether policyholders of VIG or not, to make informed and considerate decisions in relation to their specific risks. Activities in this area can be implemented as an independent initiative or as part of broader social or environmental projects, demonstrating the commitment of VIG insurance companies to embedding risk literacy in their core business.
A general increase in the demand for insurance products that strengthen personal resilience is seen by VIG insurance companies as an opportunity. This development demonstrates a growing awareness of provision, security and long-term stability among customers. VIG insurance companies see this as an opportunity to develop innovative products and services, to promote individual resilience and at the same time to strengthen societal resilience. In this way, VIG insurance companies are making a contribution to sustainable growth and helping to improve the financial security of their customers.
The risk identified in the double materiality assessment relates to the possibility of using insufficient or misleading information, for example when offering products that meet ESG criteria (greenwashing). Responsible handling of product information is crucial in order to strengthen customer trust in the long term.
Consumers and end-users are equally affected by the identified negative impacts, opportunities and risks; a distinction according to sub-groups is therefore not necessary.