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ORIGINAL RESEARCH article

Front. Appl. Math. Stat.
Sec. Mathematical Finance
Volume 10 - 2024 | doi: 10.3389/fams.2024.1474565
This article is part of the Research Topic Financial Modeling with Frictions View all 3 articles

How ESG corporate reputation affects sustainability premiums in insurance industry

Provisionally accepted
Maria Carannante Maria Carannante 1*Valeria D'amato Valeria D'amato 2Maria Sole Staffa Maria Sole Staffa 3
  • 1 University of Naples Parthenope, Naples, Campania, Italy
  • 2 Sapienza University of Rome, Rome, Lazio, Italy
  • 3 European University of Rome, Roma, Lazio, Italy

The final, formatted version of the article will be published soon.

    Based on increasing ESG awareness, executives and investment professionals consider ESG factors in strategic and operational decisions. Like other companies, insurers recognise that the ESG transition offers opportunities for long-term value creation. In our research, we evaluate how ESG corporate engagement impacts an insurance company's balance sheet in economic and financial terms, unlocking financial resources throughout the sustainability premium. We resort to the theoretical paradigms of behavioural finance applied to actuarial portfolio evaluations.Our findings show that ESG engagement is significantly performing since it determines higher expected profits. We offer our framework as a tool for the strategic decision-making process.

    Keywords: ESG, Prospect Theory, corporate reputation, Behavioural finance, actuarial evaluations

    Received: 01 Aug 2024; Accepted: 26 Nov 2024.

    Copyright: © 2024 Carannante, D'amato and Staffa. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence: Maria Carannante, University of Naples Parthenope, Naples, 80133, Campania, Italy

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.