Sustainable strategies in the insurance market in the light of ESG criteria

The implementation of sustainability strategies needs new tools in insurance market regulation which has to be driven by three fundamental principles. The first one is the principle of proportionality (see Article 5(4) of the Treaty on European Union) which requires that the regulation of the market must be specifically targeted (suitable), impose the least economic burden (necessary), and be balanced in providing a net positive impact on welfare regarding its economic impact. The second one is the principle of subsidiarity. The principle of subsidiarity states that a larger and higher body, such as a government, should not exercise functions that can be carried out efficiently by a smaller one, such as an individual or a private group, acting independently. Therefore, private enforcement assumes relevance in market regulation. Notwithstanding all the national rules designed to protect general interests and supported under public law (through criminal sanctions or administrative sanctions), individual rights, exercised according to the rules of private law, can strengthen the effectiveness of the public order. Moreover, the instruments of private law show greater “flexibility” when it comes to evaluating concrete cases and therefore a better correspondence to the function of violated rules1