ESG (Environmental, Social, and Governance factors) is a framework used by companies and investors to evaluate the sustainability and ethical impact of their operations and investments. Quantifying the ESG “S” factor for insurance providers is one of the ways to measure and evaluate the impact of disability-related factors on their operations and decision-making.
The ESG “S” factor can also be a useful tool for the insurer to promote social responsibility. This is done in a couple of ways. First, it’s considered a social factor related to labor standards and human rights, as it demonstrates the insurance provider’s commitment to supporting employees with disabilities, and clients who purchase their group disability benefit plans. Second, it’s considered a governance factor, as it reflects the insurance company’s ability to effectively manage and allocate resources.
CPPD case management is part of the ESG factor because it impacts the insurance provider’s operations and is linked to positive social and financial outcomes. This happens when an insurance provider has an effective CPPD case management system and process that results in increased efficiency managing CPPD applications. This provides a positive claims outcome and experience for all stakeholders by releasing the disability reserves which in turn increases shareholder value. The release of disability reserves means that the insurance company has an opportunity to invest in sustainable and socially responsible initiatives. Depending on how the released disability reserves are allocated, investment in sustainable and socially responsible initiatives will demonstrate the insurance provider’s commitment to environmental and social issues, respectively.
Overall, CPPD case management services demonstrate ESG factors as providing social, environmental and financial impacts that are relevant to the ESG analysis and our communities.
*CPPD case management is a service offered for insurance providers to assist their disabled claimants on LTD apply for the Canada Pension Plan Disability benefit to offset their costs and release disability reserves.