The comparability of non-financial information in insurance companies

• Published in: Scientific Papers of Silesian University of Technology. Organization and Management Series 2023, Vol.2023 (182), p.9-30
• Main Authors: Chmielowiec-Lewczuk, Magdalena, Lament, Marzanna, Bauer, Kinga, Spigarska, Ewa
• Format: Article
• Language: English
• ISSN: 1641-3466
• DOI: 10.29119/1641-3466.2023.182.1

Purpose: The paper aims to assess the comparability of non-financial information disclosed in the annual reports of insurance companies. Design/methodology/approach: This study applies to the Polish insurance market. The reports of the following insurance companies have been evaluated: PZU, Ergo Hestia, and UNIQA. The methodology is based on the NiCE index of financial reporting quality assessment, though it’s original. The authors have developed a method of evaluation suited to the specific nature of non-financial information. A set of six areas is prepared and a five-point Likert’s scale is applied to assess how the criteria defined for these areas are fulfilled. Findings: The comparability of non-financial information across insurance companies is a very difficult and subjective process. This is first of all due to the fact this information is not measurable and the structures of non-financial reporting by the particular companies are not formalised. The reports disclose some varied extents of details, not only for the particular undertakings, but even over years. This requires some systematic standards of non-financial reporting to be compiled and assessment indicators for the positions of insurance companies to be standardised in future. Research limitations/implications Since the research sample was limited, the study should be treated as a pilot and its results as an introduction to further, more in-depth empirical research. Social implications: Non-financial information relates to the realisation of sustainable development strategies, in particular, the ESG (Environment Social Governance) issues, and forms a major area of assessment of an economic undertaking’s reliability. It’s therefore important that it shows certain useful characteristics, in particular, comparability, especially important to decision-making processes. This study identifies some areas for improvement and thus contributes to the improvement and restricts the risk of the decision-making process in both insurance companies and organisations that constitute their social and economic environment. Originality/value: This research extends the knowledge concerning the assessment of non- financial reporting quality and fills a gap in research into its comparability in insurance companies. Keywords: insurance companies, non-financial information, ESG (Environment Social Governance) reporting, comparability of information. Category of the paper: research paper.