SERI

What is a climate-ready
financial product? Standard for Environment, Risk and Insurance

Standard for Environment, Risk and Insurance

SERI is a programme bringing partner organisations and leading institutions to bridge the data gaps between finance and climate change. Its ambition is to build the shared data infrastructure that will underpin and enable a transition to a green economy, and to a green financial system. It was seed-funded by UKRI, Climate-KIC and industry.

UKRI funded Climate-KIC Insurance sector Climate-ready products Building Passport use case

“Nothing gets invested in unless it’s insured.” As large climate-driven catastrophic events occur with higher frequency, the UK’s insurance market needs to evolve. While huge opportunities exist to deliver innovative financing for a resilient and net-zero future, a lack of data flow is leading to the misallocation of resources and missed opportunities which creates catastrophic risks on our global balance sheets.

Programme overview

Bridging data gaps between finance and climate

SERI was born out of an 18-month consultation with the insurance industry, policymakers and individual practitioners, during which the project team had conversations with more than 230 experts. Building upon the approach of the Open Banking Standard, IB1 acts as an independent third party to convene the relevant stakeholders: insurance brokers, data providers, legal expertise, and academic researchers.

Climate-ready financial products

In 2020, SERI focused on developing climate-ready financial products to enable insurers to invest in demonstrably net-zero financial products and services. The aim is to create a clear, impactful data governance framework that enables government, businesses, consumers and third-party developers to understand the potential of sector-wide data sharing in insurance.

Climate-Ready Building Passport

In 2021, SERI focused on a Climate-Ready Building Passport concept to develop a use case exploring what can be enabled with a shared data infrastructure. The use case analyses data needs, data sharing and data flow amongst asset managers and insurers in a commercial building insurance case.

Open standard for data sharing

The SERI aim is to create a data governance framework (the Standard for Environment, Risk and Insurance) that details the steps to implementation in the UK and empowers decision-makers to mandate, measure and act upon the data-flows that enable Net Zero.

Cross-sector approach

The SERI principles and best practices build on those of Open Banking and Open Energy. In cases where many-to-many data sharing is required, a Shared Data Governance approach is the most effective option to deliver the objectives for data interoperability, standardisation and efficiency.

SERI partners: Aon, Arup, Agvesto, Bird and Bird, Brit Insurance, ClimateWise, Dais LLP, Lloyd’s Register Group, Cambridge Zero at the University of Cambridge and Willis Towers Watson.

Outputs

Published deliverables

Each report and mapping exercise lays the pathway for a data governance framework for the insurance sector, the creation of insurance products which drive towards net zero, and details of the steps to implementation of SERI in the UK.

Report 1

Trusted Data Ecosystems

The Principles and Practices of a Trusted Data Ecosystem. SERI principles and best practices building on Open Banking and Open Energy, recommending a Shared Data Governance approach for many-to-many data sharing.

Report 2

Market Transformation

SERI: The Potential Transformation in the Insurance Market. High-level business model and market transformational opportunities for an open standard for data sharing within the insurance sector.

Report 3

Ecosystem Map

SERI ecosystem concept map displaying how data sharing can occur in the insurance sector, mapping data flows, actors and interactions.

Report 4

Building Passport

Climate-Ready Building Passport Use Case. Analyses data needs, data sharing and data flow amongst asset managers and insurers in a commercial building insurance case to demonstrate the value of a data sharing framework.

Report 5

Operational Pathway

A Pathway Towards SERI: Operational and Technical Considerations. Lessons learned from Open Banking and Open Energy, recommended data sharing governance framework and pathway to implementation.

Report 6

Regulatory Framework

Envisioning SERI’s Regulatory and Data Sharing Framework. High-level governance framework and four regulatory recommendations covering authorisation, data sensitivity, trust framework, liability, and standards stewardship.

Phase 1 Reports (December 2020)

Stakeholder Mapping · Business Models · User Needs Analysis · Phase 1 Standard · SERI FAQ

Webinars

Progress presentations

London Climate Action Week 2021

Panel of insurance industry experts examining the role of insurance in the UK’s commitment to the Paris Agreement and the drive towards Net Zero.

London Climate Action Week 2020

Show and tell on progress eight months into the programme to develop the Standard for Environmental Risk and Insurance.

Governance

Advisory Groups

SERI operates Advisory Groups to engage with a broader base of stakeholders around key strands of work, following the IB1 Icebreaking methodology.

AG1: Commercialisation and User Needs

Development and validation of the climate-ready building passport use case, articulating the user needs addressed by and market opportunities enabled by an open framework for data sharing within the insurance sector.

AG2: Systems and Standards

Development of high-level operational and technical guidance for the governance framework, the concept map for the use of existing standards, and recommendations for principles and practices to enable the framework.

Advisory Group members include individual experts from: Aon, Brit Insurance, ClimateWise, Lloyds Group, Arup, Bidwells, Centre for Digital Built Britain, Institute and Faculty of Actuaries, Building Stock Lab (UCL Energy Institute), AIR Worldwide, QOMPLX, Katrisk, JBA Risk Management, Demand Logic, Greenkite, Bright Blue Hare, Resilience Brokers, Insurance Development Forum, iBRoad, Chetwoods Architects, Resurgence, Impact Management Project, and Quantenergy.

230+

Experts consulted during 18-month industry consultation

15+

Partner organisations including Aon, Arup, Bird and Bird, Willis Towers Watson

Published reports and deliverables across Phase 1 and Phase 2

CC-BY

All SERI outputs openly licensed

What is a climate-readyfinancial product? Standard for Environment, Risk and Insurance