The IFSIG project aims to promote the role of insurance and finance in supporting a sustainable and inclusive economic growth building on three interconnected and interdisciplinary research lines, each characterized by a specific approach: a financial-economic one, a purely financial one and an actuarial one.
The objective of the project is twofold: i) to provide actuarial and financial strategies that accomplish sustainable economy and social recovery along the lines of the National Recovery and Resilience Plan (NRRP) and ii) to propose innovative models for analyzing the risk-return profile of instruments of sustainable insurance and finance. It is possible to frame these objectives in the context of Missions 5 and 6 of the NRRP, which focus on the themes of inclusion, cohesion and health.
The role of sustainable finance is crucial for the economic recovery and growth, since financial markets can combine profit objectives with the generation of social value (Schoenmaker & Schramade, 2019) and they can involve the private sector in the Sustainable Development Goals (SDG) described by the Agenda 2030. Within this framework, our research makes advancements over three main issues. First, the development of models for pricing the most widespread sustainable finance instruments, i.e. green and social bonds. Second, the assessment of Environmental, Social and Governance (ESG) products and their credit quality. Third, the evaluation of insurance instruments with social and environmental value. The solution of these issues will help the finance and insurance industry to take a proactive role by i) promoting sustainable economic development using investments in ESG asset classes; ii) designing appropriate products with social and inclusive objectives; iii) experimenting solutions for social and environmental sustainability.
The three research units involved in the project, the University of Naples Federico II, Sapienza University of Rome and University of Modena and Reggio Emilia, provide the required multidisciplinary skills that help tackling the problem; with an expertise that ranges from quantitative methods and actuarial-financial analysis to economic modeling and policy design. Each research unit will develop models in line with the project goals (i.e., the evaluation of sustainable financial investments, the assessments of the credit quality of the ESG products and sustainable insurance) and will contribute to build new metrics for measuring the impact of social and environmental strategies. Our results will have both industrial and policy implication, being relevant for many private economic sectors and for the public sector.